Your rights and remedies under the eminent domain law.

1. EMINENT DOMAIN:
YOUR RIGHTS AND REMEDIES
1

2. 2

3.  WE OBTAIN JUST
COMPENSATION FOR
OWNERS AND BUSINESSES!
3

4.  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.
4

5.  Real estate
 Severance damages
 Tenant improvements, fixtures, machinery
and equipment
 Inventory
 Leasehold interests
 Business goodwill
 Relocation benefits
 Litigation expenses, interest and court costs
5

6. 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
6

7.  Tenant improvements
 Fixtures, machinery and equipment
 Who owns it?
 Unavoidable loss in value due to the taking
 Duty to mitigate damages
7

8. 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.
8

9. Bonus Value
 What is it?
 What do I have to do to
claim it?
 Can claiming it affect other
areas of compensation?
9

10.  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).
10

11. BEFORE AFTER
11

12.  Moving Expenses – No Cap
 Price Differential Payment - Residential
 Re-establishment Expenses - $10,000 Cap*
 Search Expenses - $1,000 Cap*
 “In Lieu” Payment for Businesses
12

13.  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?
13

14.  Appraisers
◦ Why necessary?
◦ Qualifications ?
 Other experts
◦ Planners
◦ Environmental engineers
 $5,000 payment toward reasonable
cost of real estate appraisal
14

15.  Agency’s appraisers
 Agency’s environmental
consultants
 Negotiating the Right of
Entry Agreement/Permit
15

16.  Percentage of excess over offer
 No fee unless excess over offer
 No charge for travel costs
16

17. 17

18. THANK YOU
Sullivan, Workman & Dee LLP
18