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-