EMINENT DOMAIN:YOUR RIGHTS AND REMEDIES

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WE OBTAIN JUST COMPENSATION FOR

OWNERS AND BUSINESSES!

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The agencies have their own attorneys, appraisers and right-of-way agents. You should have a team too.

To be forewarned is to be forearmed. Be prepared.

Be proactive. Help yourselves. Don’t wait for the agency’s help.

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Real estate

Severance damages

Tenant improvements, fixtures, machinery and equipment

Inventory

Leasehold interests

Business goodwill

Relocation benefits

Litigation expenses, interest and court costs

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Fair Market Value

The highest price property would sell for

based upon its “highest and best use.”

Approaches to Value

Market Data (comparable sales)

Income

Replacement

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Tenant improvements

Fixtures, machinery and equipment

Who owns it?

Unavoidable loss in value due to the taking

Duty to mitigate damages

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What does your lease say?If the Premises or any portion thereof are taken under the power of eminent domain or sold under the threat of the exercise of said power (collectively "Condemnation"), this Lease shall terminate as to the part taken as of the date the condemning authority takes title or possession, whichever first occurs. If more than 10% of the Building, or more than 25% of that portion of the Premises not occupied by any building, is taken by Condemnation, Lessee may, at Lessee's option to be exercised in writing within 10 days after Lessor shall have given Lessee written notice of such taking (or in the absence of such notice, within 10 days after condemning authority shall have taken possession) terminate this Lease as of the date the condemning authority takes such possession. If Lessee does not terminate this lease in accordance with the foregoing, this Lease shall remain in full force and effect as to the portion of the Premises remaining, except that the Base Rent shall be reduced in proportion to the reduction in utility of the Premises caused by such

Condemnation. Condemnation awards and/or payments shall be the property of Lessor, whether such award shall be made as compensation for diminution in value of the leasehold, the value of the part taken, or for severance damages; provided, however, that Lessee shall be entitled to any compensation for Lessee's relocation expenses, loss of business goodwill and/or Trade Fixtures, with out regard to whether or not this Lease is terminated pursuant to the provisions of this Paragraph. All Alterations an Utility Installations made to the Premises by Lessee, for purposes of Condemnation only, shall be considered the property of the Lessee and Lessee shall be entitled to any and all compensation which is payable therefore. In the event that this Lease is not terminated by reason of the Condemnation, Lessor shall repair any damage to the Premises caused by such Condemnation.

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Bonus Value

What is it?

What do I have to do to claim it?

Can claiming it affect other areas of compensation?

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Not the same as increased expense/lost profits.

Before and after conditions. Must have goodwill value in the before condition in order to be compensated for a loss.*

Reasonable efforts to mitigate loss.

No duplication of compensation (i.e. through relocation reimbursements).

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BEFORE AFTER

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Moving Expenses – No Cap

Price Differential Payment - Residential

Re-establishment Expenses - $10,000 Cap*

Search Expenses - $1,000 Cap*

“In Lieu” Payment for Businesses

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Have I considered the self-move option?

Can I afford to reestablish?

Have I considered how my relocation claim can affect my other claims for compensation?

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Appraisers

◦Why necessary?

◦Qualifications ?

Other experts

◦ Planners

◦ Environmental engineers

$5,000 payment toward reasonable cost of real estate appraisal

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Agency’s appraisers Agency’s environmental

consultants Negotiating the Right of

Entry Agreement/Permit

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Percentage of excess over offer No fee unless excess over offer No charge for travel costs

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THANK YOU

Sullivan, Workman & Dee LLP

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