This document provides an outline for a course on eminent domain and condemnation law. It covers topics such as the eminent domain process, calculating just compensation, trial practice and strategy, and legal resources. Key points include the constitutional and legislative authority for eminent domain, the requirement that takings be for public use and with just compensation, methods for determining property value, and defenses to the government's right to take property.

1. February, 2018
Eminent Domain and Condemnation Law
Anthony F. DellaPelle, Esq., CRE
Shareholder, McKirdy, Riskin, Olson & DellaPelle, P.C.
Morristown, New Jersey

2. Course Outline
2
• The Eminent Domain Process
• Condemnor vs. Condemnee Perspectives
• Challenging the Right to Condemn
• Calculating Just Compensation
• Trial Practice and Strategy
• Environmental Issues
• Relocation Assistance

3. The Eminent Domain Process
3
• Constitutional and Legislative Grant of Authority
• Enabling Legislation – Municipal, County, Special
Agency, State and Federal Governments
• Public Use Requirement
• Requirement for Just Compensation

4. • Constitutional and Legislative Grant of Authority
• Western Union Tel. Co. v. Penn. R.R. Co., 195 U.S. 540 (1904)
• Enabling Legislation – Municipal, County, Special Agency, State and
Federal Governments
• Cincinnati v. Louisville & N.R. Co., 223 U.S. 390 (1912)
• Public Use Requirement
• Kohl v. United States, 91 U.S. 367 (1875)
• Requirement for Just Compensation
• Bauman v. Ross, 167 U.S. 548 (1897)
4
The Power of Eminent Domain

5. • The power of eminent domain is not automatic – it must be granted
through legislative action
• Boom Co. v. Patterson, 98 U.S. 403 (1878)
• The legislature may delegate the power to other agencies
• Luxton v. North River Bridge Co., 153 U.S. 525 (1894)
• Acts concerning the power of eminent domain are generally strictly
construed (C.J.S., Eminent Domain, Sec. 2)
• Delaware, L & W.R. Co. v. Morristown, 276 U.S. 182 (1928)
• The power may only be exercised for the purposes, in the manner and
subject to the conditions prescribed by the legislature
• Berman v. Parker, 348 U.S. 26 (1954)
• Executive Orders cannot authorize eminent domain
• Youngstown Sheet & Tube Co. v. Sawyer, 343 U.S. 579 (1952)
The Right to Condemn
5

6. • What are the legislative actions that can authorize eminent
domain?
• Statutes
• Local agency ordinances
• Resolutions?
• Federal/State/County/Local/other
• Specific government agencies usually have specific eminent
domain powers
• How the power is exercised may ordinarily be subject to an
omnibus procedural eminent statute (e.g., Eminent Domain
Act)
The Right to Condemn
6

7. • Public utilities can exercise eminent domain
• Statutory Grant
• Natural Gas Act (15 U.S.C. 717F(h)
• State statutes
• Requires Administrative/Regulatory approval
• Limited Authority
• Limited to designated area and properties
• Subject to restrictions imposed by authorization
• Must compensation precede taking/preliminary entry authorized?
• Jurisdictional issues for regional, interstate, international projects
The Right to Condemn
7

8. Just Compensation
8
• "...nor shall private property be taken for public use without just
compensation."
• U.S. Const. Amend. V
• "Private property shall not be taken for public use without just
compensation. Individuals or private corporations shall not be
authorized to take property for public use without just
compensation first made to the owners."
• N.J.S.A. Const. Art. 1, Sec. 20

9. Just Compensation
9
• Compensation for the property taken
• Reduction in value (damages) to any remaining
property
• Interest
• Indemnity for loss
• Attorneys’ fees and costs not generally recoverable by
condemnee

10. Legal Resources
10
• Eminent Domain Act - N.J.S.A.20:3-1 et seq.
• Rule 4:73 (Condemnation)
• Relocation Assistance Act - N.J.S.A. 20:4-1 et seq.,
N.J.S.A. 27:7-72, et seq. and regulations - N.J.A.C. 5:11-
1; N.J.A.C. 16:6-1.1 et seq.
• Local Redevelopment and Housing Law – N.J.S.A.
40A:12A:-1, et seq.

11. Legal Resources (cont’d)
11
21 New Jersey Practice,
Skills and Methods,
Eminent Domain

12. Legal Resources (cont’d)
12

13. Legal Resources (cont’d)
13
• The Appraisal of Real Estate, 14th Ed. Appraisal Institute
• Eaton, Real Estate Valuation in Litigation, 2d Ed.,
Appraisal Institute
• New Jersey Condemnation Law Blog:
www.njcondemnationlaw.com

14. Eminent Domain Act of 1971
14
• N.J.S.A. 20:3-1 et seq.
• Uniform procedure applicable to all proceedings in
which the power to condemn is being exercised, except
acquisitions by PANYNJ which proceed pursuant to
N.J.S.A. 32:1-77, et seq.
• Applies to “inverse” actions

15. Four-Step Process
15
• Attempt at amicable resolution through bona fide
negotiations
• Final judgment on authority for and due exercise of
power by condemnor
• Commissioners’ Hearing
• Jury Trial on appeal from Commissioners’ Report on the
issue of just compensation

16. What Constitutes “Property”
16
• Real vs. Personal Property
• As to real estate, “functional unit” test for “fixture”
issues
• Interplay between functional unit and moving expenses
as relocation benefit
* N.J.S.A. 20:3-2(d)
* State v. Gallant, 42 N.J. 583 (1964)

17. Single Issue -Value - Controversy
17
• Fact finder is concerned with just compensation only -
Court adjudicates all other issues (e.g., title, proceeds
allocation)
• One award representing the value of all interests in the
property (“unit rule”)
• Award must take into account all damages, both
present and prospective - no further proceedings or
relief

18. Date of Value
18
Pursuant to N.J.S.A. 20:3-30, the earliest of the following
events:
 Date possession is taken by the condemnor
 Complaint date
 Date on which condemnor substantially affects use and
enjoyment of property
 Declaration of “blight” or “in need of redevelopment”
determination, but see N.J.S.A. 20:3-38
* See Kirby Forest Industries v. U.S., 467 U.S. 1 (1984)

19. Prelitigation Matters
19
• Prelitigation Entry and Inspection/Evaluation
• N.J.S.A. 20:3-16
• Title Searches
• Parcel Surveys
• Appraisal
• Environmental Inspections
• Right of Entry

20. Bona Fide Negotiations
20
• Notice of appraisal inspection
• Written offer by certified mail
• Offer not less than approved appraisal
• Description of property to be acquired
• Disclosure of all appraisals obtained
• Minimum 14 days for reply to offer
• Must address issues raised by owner

21. Litigation - Phase 1
21
• Complaint
• Order to Show Cause
• Declaration of Taking
• Order Permitting Deposit
• Notices
• Answer
• Judgment Appointing Commissioners

22. Complaint
22
Must include:
• a statement showing the
amount of compensation
offered by the condemnor;
• a reasonable disclosure of the
manner in which the amount
has been calculated.
“Reasonable disclosure” by the
condemnor includes furnishing
the condemnee with:
• the map
• a description of land to be
acquired
• the identity of the improvements
to be acquired, if any
• a statement of the full fair
market value
• a description of the appraisal
valuation method or methods
relied upon
(cont’d)

23. Complaint (cont’d)
23
• a breakdown of the appraised
value allocated to the land to be
acquired, and improvements to be
acquired, if any;
Data concerning comparable sales
or leases relied upon in
determining the amount of
compensation offered which shall
include:
• names of seller and purchaser or
landlord and tenant,
• the location of the property by
block, lot, street, street number,
and municipality,
• date of sale or date and duration of
lease
• the consideration for the sale or
amount of rent
• the book and page number of the
recording of the deed of the
comparable sale
• any unusual factors concerning the
property known to the condemnor
which may affect value.

24. Parties
24
• Join all parties with an interest in the property, e.g.:
• Tenants, holders of easements, occupants
• Mortgagees and other lienholders
• Municipality (for taxes)
• Only those parties who are joined have their interest foreclosed by the
proceedings.
• Easements are to be condemned separately as a “DE” parcel together
with the property which it serves; the area of the easement should be
designated on the serviant parcel as “SE” and the appraisal should
adjust accordingly.

25. Order to Show Cause
25
• Action is brought in a summary manner pursuant to
R.4:67.
• May be presented to the court ex parte.
• No summons, but language is consistent
• Served within the state at least 10 days before the
return date

26. Declaration of Taking
26
• Basically, a “deed” from the condemnor to itself
• Fixes the property and rights acquired based on legal
description
• Recorded in County Clerk/Register’s office

27. Order for Deposit
27
• Provides for deposit of estimated compensation
(usually the amount of the offer per the appraisal)
• May be obtained ex parte

28. Deposits into Court
28
• The amount of the initial deposit may not be less than the
amount of the prelitigation offer N.J.S.A.20:3-18 which itself may
not be less than the amount of the condemnor's approved
appraisal.
• Deposits into Superior Court are by administered by the Clerk of
Superior Court, Trust Fund Unit, which holds the funds in an
interest-bearing account.

29. Withdrawals from Court
29
• By motion and petition
• Request for dismissal of other defendants
• Processing withdrawal from Trust Funds Unit
• Condemnor’s ability to preserve portion of deposit for
site remediation
• Consideration of possession issues

30. Abandonment of Action
30
• Provided no declaration of taking has been filed, the action may be
unilaterally abandoned by the condemnor
• at any time before, or within 30 days after, the filing of the award of
commissioners;
• or in the event of an appeal from the award, at any time before, or
within 30 days after, the entry of judgment;
• or in the event that a hearing before commissioners is waived, at any
time before, or within 30 days after, judgment has been entered in the
action. [N.J.S.A. 20:3-35]
• Otherwise, condemnee must consent to abandonment
• Entitlement to fees costs and expenses. N.J.S.A.20:3-26(b)
• West Orange v. 769 Associates, LLC, 397 N.J. Super. 244 (App. Div. 2007)

31. Answer
31
• Must raise all defenses to the right to take and manner
of exercise of the power of eminent domain.
• Failure to deny the authority of the condemnor to
condemn in the manner provided for by the rules
constitutes a waiver of the defense.
• All issues other than those related to value and
damages must be determined by the court prior to the
appointment of commissioners.

32. Answer (cont’d)
32
• Must demand a jury trial if one is desired?
• Must be served and filed in accordance with the Rules
or pursuant to Order to Show Cause
• Non-contesting appearance may be filed in lieu of
answer; valuation issues preserved. N.J.S.A. 20:3-12(c).

33. Denial of Right to Condemn
33
• When the authority to condemn is denied, all further steps in the
action are stayed until the issue of the right to take has been
finally determined.
• Does “finally determined" mean exhaustion of the appellate
process if appellate review is sought?
• N.J.S.A. 20:3-11
• Bridgewater Tp. v. Yarnell, 64 N.J. 211 (1974)
• County of Sussex v. Merrill Lynch, 351 N.J. Super 1 (App. Div. 2002)
• There is no discovery on the issue of the right to condemn except
by leave of court. N.J.S.A. 20:3-12(d).

34. Some Defenses to Taking
34
• No public purpose – bad faith, pretext
• Lack of necessity
• Failure to pass requisite authorizations
• Indefinite description
• Failure to engage in bona fide negotiations. N.J.S.A.
20:3-6

35. Return Date of Order to Show Cause - The Right to Take
• Condemnor’s Procedural and Substantive
Compliance with Eminent Domain Act
• Hearing may be required
* R. 4:67-5; R. 4:73-1
* Bergen County v. Hackensack, 39 N.J. 377 (1963)
35

36. Judgment Appointing Commissioners
36
• Final Judgment as to
Right to Take and Due
Exercise of Power
• Appoints 3
Commissioners
• Jurisdiction now with
Commissioners
• Appealable as of right
• Stay of further
proceedings upon
appeal?

37. Litigation - Valuation Proceedings
37
• Valuation (Appraisal)
• Commissioner’s Hearing Procedure
• Jury or Bench Trial – de novo

38. Elements of Fair Market Value
38
• Willing buyer & seller
• Neither being under a compulsion to act
• Being fully informed of all facts and circumstances
about the acquired property (even if not known on date
of value)
• Owner is not limited to value for the use to which
property is currently being put - owner entitled to value
for highest and best use. State v. Caoili, 135 N.J. 252
(1994)

39. Applying the Approaches to Value
• Highest and Best Use must first be determined
• The appraiser begins to derive an opinion of property value using one
or more of the three approaches to value.
• The approaches employed depend on the type of property, the use of
the appraisal and the quality and quantity of the data available for
analysis.

40. 40
The Three Approaches to Value
• Sales Comparison or Market Data Approach
• Cost Approach
• Income Approach

41. 41
Sales Comparison Approach
• Sales approach is “king”
• Based on sales of similar or “comparable” properties
• Units of comparison
• Sale price per acre/SF
• Sale price per “unit” – lot, buildable SF (FAR)
• Sales distinguished from:
• Offers or Listings
• Options
• Contracts

42. 42
Cost Approach
• Value of a property is derived by adding the estimated value of the land to the current
cost of constructing a reproduction or replacement for the improvements, and then
subtracting the amount of depreciation in the structures from all causes.
• Entrepreneurial profit and/or incentive may be included in the value indication.
• Land value is derived through a comparable sales/market approach
• Source(s) of current cost -- cost estimators, cost manuals, builders and contractors.
• Not “replacement value”
• Depreciation - physical deterioration, functional obsolescence and external
obsolescence
• measured through market research and the application of specific procedures.
• Cost approach is particularly useful in valuing new or nearly new improvements and
“special purpose” properties that are not frequently exchanged in the market.

43. 43
Income Capitalization Approach
• Based on conversion of income and capitalization into property value
• Often summarized as “the present value of future benefits“
• Example:
• An asset produces $5,000 of net income per year
• What is the value of that asset?
• If the rate of return is known to be 5%, then the value is $100,000
• S5,000 income/ 5% = $100,000
• If the rate of return is known to be 10%, then the value is $50,000
• $5,000 income/10% = $50,000

44. 44
Reconciliation of Value Indications
• If two or more approaches to value are used, the value indications
must be reconciled
• Are they averaged or weighted?
• Do they indicate that more research is required?
• What if the indications are disparate?
• Will this test the reliability of each approach?
• Quality and quantity of data used
• Is a “range” an acceptable conclusion?

45. “Wide Factual Inquiry”
45
of “all material facts and circumstances – both past and
prospective – that would influence a buyer or seller
interested in consummating a sale of the property”
State of New Jersey by Commissioner of Transportation v. Silver, 92 N.J. 507 (1983)
Village of South Orange v. Alden Corporation, 71 N.J. 363 (1976)

46. Entire Taking
46
Just compensation determined by “fair market
value” of the property as of the date of value

47. Partial Taking – Two Methods of Valuation
47
• Before and After method
value of entire parcel before taking – value of
remainder after taking = just compensation
• Per Se method
value of land taken + diminution in value (or
damages) to remainder = just compensation

48. Partial Taking – The Landscape Has Changed
48
Harvey Cedars v. Karan – 214 N.J. 384 (July, 2013):
 general-benefits doctrine is “at odds with contemporary
principles of just-compensation jurisprudence”
 Jury only permitted to hear “one side” of the story
 Could result in a “windfall” to the property owners at public
expense
 Just compensation in partial taking must be based upon a
consideration of “all relevant, reasonably calculable, and
non-conjectural factors that either decrease or increase
the value of the remaining property”
 Court recognizes that the loss of view is compensable, but
requires rehearing permitting evidence regarding the
impact of the storm protection benefits upon the value of
the property as an offset to damages

49. Mitigation – Cost to Cure
49
3 Basic Rules:
 Evidence of cost of restoring remaining property can be
no greater than decrease in marked value if left
uncured
 Cannot be speculative (reasonable and certain –
previously written existing boundaries of tract)
 Duty to mitigate by condemnee
State of New Jersey v. Sun Oil, 160 N.J.Super. 513 (Law Div. 1978)
State of New Jersey by Commissioner of Transportation v. Weiswasser, 149 N.J. 320 (1997)

50. • In order to obtain severance damages (from taking a non-contiguous
parcel) landowner must show that remaining parcel and parcel taken
were parts of a single economic use and under the same ownership.
Housing Authority, City of Newark v. Norfolk Realty Co., 71 N.J. 314 (1976)
50
Unity of Use:
Taking of Non-Contiguous Parcel

51. Commissioners’ Hearing
51
• Non-binding arbitration
• Provide reports 15 days in advance
• Obtain Award, File Appeal
• No appearance = no right to appeal
* Borough of Keyport v. Maropakis, 332 N.J. Super. 210 (App.
Div. 2000)

52. Appeal from Award of Commissioners
52
• File within 20 days of service of award
• May be relaxed up to 30 days for good cause
• Non-relaxable thereafter
• Party may not rely on appeal filed by adversary -
Adversary may withdraw
* City of Long Branch v. Spanos, A-2936-04T1, 2006 W.L.
1627977 (App. Div. 2006)

53. Litigation - Trial “De Novo”
53
• Condemnor proceeds first
• No burden of proof
• Condemnation trial is an "evidential construction of a
hypothetical sale”
• Wide discretion in admission and rejection of evidence
• Jury view of condemned property. R.4:73-7
• Environmental considerations – valuation as if
“remediated”

54. Condemnor’s Perspective
54
Obligations of the Condemning Authority
"…the power to take property through eminent domain is one of the most
intrusive aspects of sovereignty“ [State, by Comm'r of Transp. v. D'Onofrio,
235 N.J. Super. 349 (Law Div. 1989)].
"…in the condemnation field, government has an overriding obligation to deal
forthrightly and fairly with property owners…. (i)t may not conduct itself to
achieve or preserve any kind of bargaining or litigational advantage over the
property owner…. Its primary obligation is to comport itself with
compunction and integrity, and in doing so government may have to forgo the
freedom of action that private citizens may employ in dealing with one
another. [F.M.C. Stores, Co. v. Morris Plains, 100 N.J. 418 (1985)].

55. Condemnor’s Perspective (Cont’d)
Damnum Absque Injuria
Loss of business; franchise, future or current profits, tenants or good will
generally non-compensable
State v, Comm'r of Transp. v. Hess Realty Corp., 226 N.J. Super. 259 (App. Div.
1988), certif. den. 113 N.J. 229 (1989), cert. den. 493 U.S. 964 (1989)
but see
State, by Comm'r of Transp. v. Arifee, 2009 N.J. Super. Unpub. LEXIS 2333
55

56. Condemnor’s Perspective (cont’d)
56
Damnum Absque Injuria
Damages resulting from condemnor's use of land acquired from others (power
lines on adjoining property)
P.S.E. & G. Co. v. Oldwick Farms, Inc. 125 N.J. Super. 31 (App. Div. 1973), certif.
den. 64 N.J. 113 (1973)
Loss of visibility resulting from condemnor's use of land acquired from others
State, by Comm'r of Transp. v. Weiswasser, 149 N.J. 320 (1997)

57. Condemnor’s Perspective (Cont’d)
Damnum Absque Injuria (cont’d)
Damages attributable to general circuity of travel, changed traffic
patterns or erection of barrier
• State v. Monmouth Hills, Inc. 140 N.J. Super. 449 (App. Div. 1970), certif. den.
57 N.J. 133 (1970)
• State, by Comm'r of Transp. v. Charles Investment Corp., 143 N.J. Super. 541
(Law Div. 1976), aff'd 157 N.J. Super. 14 (App. Div. 1977), aff'd o.b. 76 N.J. 86
(1978)
57

58. Condemnor’s Perspective (cont’d)
58
Damnum Absque Injuria (cont’d)
Noise and vibration impacts absent proof that there is measurable
increase in noise level and/or vibrations caused by taking and
proof that such impacts are reflected in the marketplace.
State, by Comm'r of Transp. v. Carroll, 123 N.J.
308 (1991)

59. • Condemnor may insert in Complaint full reservation of rights with respect to
contamination, solid waste, known or unknown;
• Future cost recovery actions by a condemnor or related party Will NOT be barred
by and doctrines of preclusion; e.g. Res Judicata, Collateral Estoppel, or Entire
Controversy Doctrine.
• Eminent Domain Act does not mandate a condemnor to conduct a full
environmental assessment, but only requires to disclose what is known at the
time.
• New Jersey Transit Corporation v. Cat in The Hat, L.L.C., 177 N.J. 29 (2003).
59
ENVIRONMENTAL RESERVATION/COST RECOVERY

60.  Environmental Costs cannot be Deducted from Fair Market Value; Property is to
be valued as if “Remediated”.
 Estimated Cost of Remediation May be Withheld by the Court and Remain on
Deposit Pending Filing of a Separate Cost Recovery since it is a “Transactional
Cost’.
 Trial Court Hearing may be Held to Determine Appropriate Amount to Withhold
on Deposit.
 In Appraising Properties as Remediated, Stigma by reason of the Remediated
State of the Property can be Considered; recommended to have market support
thereof.
 Housing Authority of the City of New Brunswick v. Suydam, 177 N.J. 2 (2003).
60
ENVIRONMENTAL/REMEDIATION & VALUATION

61.  Effect upon Highest and Best Use:
◦ In order to develop property to H & B Use, further remediation may have to
be conducted; this may in turn present additional extraordinary costs over and
above those which may be incurred compared to a property not needing
additional or no further remediation.
◦ Cost of further Remediation may not be cost effective and thereby limit H & B
Use of property.
◦ Stigma may have impact upon marketability of property or otherwise impact H
& B Use of Property.
61
EFFECT OF REMEDIATION ON VALUATION OF A
PROPERTY

62. • Uniformity
• Equality
• Provide benefits variety of events, including non-condemnation
events
• All qualified occupants are entitled to relocation assistance, including
tenants, owners, relatives, family members and other qualified
occupants.
• Require relocation plan (WRAP) prior to acquisitions and
relocations.
Relocation Assistance

63. 63
 N.J.S.A. 20:4-1 (Relocation Assistance Act)
◦ The regulations promulgated pursuant to N.J.S.A. 20:4-1, et seq., are found at
N.J.A.C. 5:11-1.1, et seq.
 N.J.S.A. 52:31B-1, et seq. (Relocation Assistance Law of 1967)
◦ The regulations promulgated under N.J.S.A. 27:7-72, et seq., are found at
N.J.A.C. 16:6-1.1, et seq.
 N.J.S.A. 27:7-72, et seq. (Uniform Transportation Replacement Housing &
Relocation Act).
 42 U.S.C.A. §4601, et seq. (Uniform Relocation Assistance and Real Property
Acquisition Polices Act of 1970).

64. 64
Relocation Assistance
 Condemnors must assist the relocatee in finding a new location or
dwelling before any attempt at displacement or eviction of the
displaced person may occur. N.J.S.A. 20:4-7; N.J.S.A. 27:7-78; N.J.A.C.
16:6-1.3(a); N.J.A.C. 5:11-2.1 and 2.2.
 Workable Relocation Assistance Plan (“WRAP”)
 Determine the needs of displacees;
 Assist displacees in obtaining replacement housing and business locations;
 Secure the coordination of relocation activities with other displacing agencies;
 Assist in minimizing hardships to displacees;
 Determine the extent of the need of each displacee for relocation assistance;
 Assure the availability of decent, safe, and sanitary housing;
 Determine the source, amount and availability of funds necessary to complete
relocation; and
 Provide any other information deemed necessary to insure the regulatory
provisions are carried out.

65. 65
Residential Relocation Payments
 N.J.A.C. 5:11-3.2: Either the actual reasonable moving expenses incurred or a fixed payment
based on the number of rooms in the unit, not to exceed $300.00, and a $200.00 dislocation
allowance.
 Moving expenses for a distance of 50 miles or less. For good cause, a move of more than 50
miles may be deemed reasonable by the displacing agency. See also, N.JS.A. 20-4-4.
 N.J.A.C. 16:6-2.1: Any displaced owner/occupant or tenant of a dwelling who qualifies is
entitled to payment of his or her actual moving and related expenses, as the agency
determines to be reasonable and necessary, including expenses for:
◦ Packing, crating, unpacking and uncrating of the personal property;
◦ Disconnecting, dismantling, removing, reassembling and reinstalling relocated household
appliances, and other personal property;
◦ Storage of the personal property for a period not to exceed 12 months, unless the agency
determines that a longer period is necessary;
◦ Rental Assistance Payments and down payment assistance. N.J.A.C. 5:11-3.5(a); N.J.A.C.
16:6-2.8; N.J.A.C. 5:11-3.6; N.J.A.C. 16:6-2.8(c)
◦ Replacement housing differential payment N.J.A.C. 5:11-3.7 (not to exceed $15,000);
N.J.A.C. 16:6-2.7 (not to exceed $22,500)

66. 66
Business Relocation Payments
 Self move agreement versus Actual and Reasonable Moving Expense
 Payment of actual moving expenses limited to:
 Actual reasonable and necessary cost:
 Moving personal property up to 50 miles
 Inspection and license fees
 Reconnecting utility service to machinery and equipment
 For physical changes in or to an existing building to which a business
relocates in order to accommodate the machinery and equipment
relocated. The owner of a displaced business may elect to replace with
a comparable item any item of personal property, including, without
limitation, outdoor advertising displays or signs, utilized in its operation
which is not to be moved. In such a case, the amount of the moving
expense payment shall be the lesser of:

67. 67
Business Relocation Payments
 Actual reasonable and necessary cost:
 the actual cost of the substitute equipment delivered and installed at
the new location less any proceeds form the disposition of the old
equipment or, if a bona fide sale cannot be made, less the market value
of the old equipment as determined by an independent appraisal; and
 The estimated cost of relocating the old equipment, as determined by
the displacing agency.

68. 68
Business Relocation Payments (cont’d)
 Loss of tangible personal property:
 A displaced business that elects not to move all or a part of the
personal property may receive a payment for actual direct loss of the
personal property not moved. Must have prior agency approval
 The payment for loss of tangible personal property shall be calculated
as follows:
 In the event the items is sold the payment shall be the fair market
value less the net sales amount (sales price less cost of sale);
 In the event the item is not sold the payment shall be the fair market
value. The item shall then be the property of the displacing agency.

69. 69
Business Relocation Payments (cont.)
 Professional services necessary for:
 Planning the move of the personal property;
 Moving the personal property; and
 Installing the relocated personal property at the
replacement location.
 Stationery, signs
 Search fees and time
 Fees paid to a real estate agent or broker to locate a
replacement site, exclusive of any fees or
commissions related to the purchase of such site; and

70. Successful Handling of Condemnation Case Requires:
70
• Appreciation of Constitutional Magnitude of Issues
• Careful Attention to Procedural Details
• Careful Attention to Substantive Details
• Familiarity with the Property and the Valuation
Concepts

71. Q&A?
Thank you!
71
Anthony F. DellaPelle, Esq., CRE®
adellapelle@mckirdyriskin.com
www.mckirdyriskin.com