Land Acquisitionfor FAA Funded Projects

-those unusual situations-

-Robert N. Merryman-

What are the Unusual Situations?

• Functional Replacement

• Government Subsidized Housing

• Cemetery Acquisition and Relocation

Functional Replacement

1. An Exception to Fair Market Value

2. Publicly owned and operated facilities

3. Emphasis is on replacing the utility of the improvement

4. Much more expensive than FMV

5. Must follow funding agency requirments

Old Berkeley High School

New Berkeley High School

Improvements Determined to be the “Norm”

• Air conditioning

• Elevators – handicapped access

• Landscaping

The “Betterments”

• Auditorium – sound system

• Floor covering / Wall coverings

• Square footage per pupil

$ What did it cost $

• Estimated FMV of old Berkeley: $3.5 mil.

• Cost of new site: $3.9 mil.

• New school building cost: $27 mil.

• Total: $30.9 mil.

Other Functional Replacements

• Fire house

• Two elementary schools

• City Hall

• Parks

Elementary School

Next Subject

Displacements from Government Subsidized Housing – Relocation Issues

Government Subsidized Housing

What is it? How does it work?

• Classic public housing

• Direct payment of subsidy to private landlords

Government Subsidized Housing

• Section 8

• Housing Vouchers

• Alternate and local programs

Displacement of Persons from Subsidized Housing

Comparable should be another unit of Subsidized Housing -

• Most likely result is zero rental subsidy• Impacts option to buy also

If no subsidized unit is available, then compute on market rate unit -

• Most likely result is large payment• Impacts option to buy also

Next

The Acquisition and Relocation of Cemeteries

Yep, the dead can move!

Negotiations

• Special rules to set value

• Determine interest of grave owners

• Who can convey; what interests are condemned; who is named

Cemetery Acquisition

The most likely scenario is that it will require

condemnation to clear title

Cemetery “Relocation”

• May be subject of a court order

• Approaches for “claimed” and “unclaimed”

• Replacement cost caps– Replacement lots– Services, caskets, liners, etc.

• Plenty of time – long slow process

Cemetery Court Order

Cemetery “Relocation”What does it cost?

• Short answer: Expensive• Grave lot: $600• Casket / Grave liner: $275/$200• Disinterment / Reinterment: $650/$250

• General rule: Claimed will be more expensive than unclaimed

CEMETERY“Unclaimed” disinterment

Thanks for your attentionand I hope you gained some

useful information

-Robert N. Merryman-