Appraisal and Acquisition:
A Collaborative Partnership
Wilson Real Estate
Speakers:
Burl Wilson, MAI, SRPA
Wilson Real Estate, Inc.
D. Wade Brown, SR/WA, R/W-RAC, R/W-NAC
(Moderator)
American Acquisition Group, LLC
Florida has a reputation for being a bit…
Weird…
…buying right of way is no exception!
Business damage procedure, for
businesses who qualify:
Defined in FS 73.071 (3b)
An established business of more than 5 years
standing on or after 01/01/2005.
•
Before 01/01/2005, more than 4 years
Effective July 1, 2000, standing
before an eminent domain proceeding is brought under this chapter
or chapter
74,
the
condemning
authority
attempt upon
to negotiate in good faith with the
•
Owned by the land
ownermust
or located
fee owner of the parcel to be acquired, must provide the fee owner with a written offer and,
adjoining lands
if requested, a copy of the appraisal upon which the offer is based, and must attempt to
•
Damages to business may be reasonably
reach an agreement regarding the amount of compensation to be paid for the parcel.
caused by denial of the use of the property.
•
•
The condemning authority must also notify business
owners separately of their rights and responsibilities.
The court shall award attorney’s
fees based solely on the benefits
achieved for the client.
The court may also
consider nonmonetary
benefits.
In assessing attorney’s fees
incurred when not otherwise
provided for
In determining the amount of
(OT, apportionment,
attorney’s fees to be paid by
supplemental proceedings):
the petitioner under
• Novelty, difficulty, importance
Attorney’s
fees(2),
based
on
subsection
the court
• Skill employed by attorney
• The amount of money
benefits
shall
be awarded
as
shall be
guided
by the fees
• Responsibility of the attorney
follows: would
the defendant
• Attorney’s reasonable time
and
• < $250,000
– 33%to pay
ordinarily
be expected
labor
• for
$250K
$1M – 25%
these– services
if the
• Customary fees
• petitioner
> $1M –were
20% not
• Attorney fee made under
subsection (1) responsible for the payment
of those fees.
In a sample of some 3,336 parcels since 2001, the settlement
rates are as follows:
% of Total $
of Parcels
Settled:
Admin 44%
FJ 56%
# of Parcels
Settled:
Admin 77%
FJ 23%
Increase Over Initial
Appraisal:
Admin 9%
FJ 42%
FDOT statewide has paid in excess $183,834,188 to all property
owner attorneys since 2005.
Importance in Florida
O Pre-suit negotiations
O Lowers Expenses
O Order of taking (OT)
O Public Purpose
O Necessity
O Good Faith Estimate of Value
O Appraisals necessary for OT
O Current Date of Value
O OT’s can be contested or
stipulated
Appraiser/Acquisition Agent Relationship:
Consistency
O Sale Selection
O Similar properties have the same sales
O Should bracket the conclusion
O Adjustments and Approaches
O The same for similar properties
O Adjustments to sales should be the same
O Formatting
O Information in the same place each report
O USPAP v. DAGs
Appraiser/Acquisition Agent Relationship:
Coordination
O Inspections
O Best place to establish a rapport with owner
O Control the participants
O Pictures, Pictures, Pictures
O Dealing with owner’s attorney
O Communication
O Appraisers, agents and clients
O Know schedules and priorities
O Get questions answered up front
O Plan changes are important!
Appraiser/Acquisition Agent Relationship:
Coordination
O Know each other’s deadlines!
O There is no magic button
O Plan changes take time
O What is the project certification date?
Litigation
O
Discovery and Public Records
O
Florida public record laws
O
Write expecting the world to see it
O
Discovery will take advantage of
E-mail
what you must keep
O
E-mail vs. Phone Call
O
Only attorney communications
shielded
O
Beware chain e-mails
O
A phone call with notes is easier to
defend
Phone
Litigation
O Depositions
O
The point where all the coordination
matters
O
Everyone should know each position
O
Don’t stray from your expertise
O Trial
O
Consistency and competency
O
The culmination of all this teamwork
Henley Road/CR 739
Clay County, FL
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2 lane rural to 4 lane divided from CR 218 to
CR 219 (approximately 5 mile)
Acquisition of fee and slope easements (121
parcels; residential and commercial)
Responsible for providing turnkey r/w services
from Title to Condemnation including
mediation and trial
18 months to certify right of way for
construction letting, including condemnation
AAG provided all management of title,
appraisal, and legal subconsultants
60% settlement rate pre-condemnation
Responsible for being client in mediations /
trial and chair business damage committee
Litigation concluded 1st quarter 2013
Under County budget for entire project