The property owner (including tenants) – be it residential or commercial property – is entitled to certain reimbursement and assistance to accomplish relocation. For a State taking, the relocation expenses can include:
(A) – Moving Expenses
(i) Professional Move – is based on the Agency obtaining two moving estimates. This is accomplished by doing an inventory of the claimant’s personal property which will be moved. Estimates must be obtained, and then confirm the amount of funds approved for the actual move. The State approves the lower of the two estimates that are obtained. The claimant will be provided with a copy of both estimates. The claimant may use any mover they want, but the State will not pay more than the lowest of the two estimates.
(ii) A Self Move – is based on the lowest of the two professional estimates with an additional deduction of 10%. However, the State will compensate in some cases for a foreman that is taken away from his normal duties to perform as an overseer of the move.
(B) – Storage
For necessary storage, the Department will reimburse the fees up to twelve (12) months. This must be approved in advance.
(C) – Tangible Loss of Personal Property
Actual direct losses of tangible personal property as a result of moving or discontinuing a business but not to exceed an amount equal to the reasonable expenses that would have been required to relocate such property.
(D)- Reestablishment Expenses up to $10,000
These are actual reasonable expenses necessary to reestablish a business at its new site. This is a “spend” to “get” benefit. Actual paid bills must be submitted. The expenditure is to make the business “whole” again. The business is to be placed back in a functional operational condition as prior to the move.
(E) – “Buy Back” or Salvage Value
If for any reason the relocatee wishes to take a trade fixture with them to the new location, they may purchase the item back from the Department for its salvage value. This is the probable sale price of an item, if offered for sale on the condition that it will be removed from the property at the buyer’s expense.
(F) – In Lieu of Moving Expenses
Any displaced business eligible for moving payment may elect to accept a fixed payment in an amount to be determined according to criteria established by the Department in lieu of moving expenses. Such payment will be determined by the last two Federal Income Tax Returns. Such payment shall not be less than $1,000 nor more than $20,000.
(G)- Searching Fees
The State will pay up to $1,000.00 searching fees. Again, this benefit is a “spend” to “get.” The claimant must document the dates, time, addresses and real estate agents that were seen and contacted for the search. However, the State takes the position that it will not pay real estate brokerage or reimburse for the security deposit required at the new site.
Also keep in mind that the extent of compensable relocation expenses varies depending on who is taking the property, – e.g., State or Federal or federally subsidized. It can also vary on the Agency of government which does the taking.
Posted in: Condemnation