Act of God – Sign Act of God – Sign RemovalRemoval

NAHBA 2006NAHBA 2006

Presentation By: John L. GarnerPresentation By: John L. Garner

What is Customary What is Customary Maintenance?Maintenance?

Florida’s DefinitionFlorida’s Definition

►The work necessary to keep the sign The work necessary to keep the sign structure in a state of good repair, structure in a state of good repair, including the replacement in kind of including the replacement in kind of materials in the sign structure.materials in the sign structure.

►LIMITATIONLIMITATION Replacement of structural materials may Replacement of structural materials may

not exceed 50% in a 24 month period.not exceed 50% in a 24 month period.

Florida’s DefinitionFlorida’s Definition

►SPECIFIC EXCLUSIONSSPECIFIC EXCLUSIONS Changes to the type of structure or Changes to the type of structure or

materialsmaterials Changes to the area of the sign facing or Changes to the area of the sign facing or

HAGLHAGL Enhancement to the visibility of the sign’s Enhancement to the visibility of the sign’s

messagemessage Addition of automatic changeable facesAddition of automatic changeable faces Addition or modification of lightingAddition or modification of lighting

Valuing partially Valuing partially destroyed signsdestroyed signs

What is the accrued depreciation on this one ???

Florida’s ApproachFlorida’s Approach

►Florida does NOT rely on an economic Florida does NOT rely on an economic valuation of a damaged structure to valuation of a damaged structure to make regulatory decisionsmake regulatory decisions

►REASONSREASONS Cost of appraisalsCost of appraisals Legal requirements for valuation Legal requirements for valuation

methodologymethodology Uncertainty in ability to evaluate depreciationUncertainty in ability to evaluate depreciation Highly litigious Highly litigious

What is a “destroyed” What is a “destroyed” sign?sign?

Destroyed?

How about this one?

This One?

Florida’s DefinitionFlorida’s Definition

“ “Destroyed” means more than 50% of Destroyed” means more than 50% of the upright supports of a sign structure the upright supports of a sign structure are physically damaged such that are physically damaged such that normal repair practices of the industry normal repair practices of the industry would call for, in the case of wooden would call for, in the case of wooden sign structures, replacement of the sign structures, replacement of the broken supports and, in the case of a broken supports and, in the case of a metal sign structure, replacement of at metal sign structure, replacement of at least 25% of the length above ground of least 25% of the length above ground of each broken, bent, or twisted support.each broken, bent, or twisted support.

Florida’s DefinitionFlorida’s Definition

EXCEPTIONEXCEPTION► If the permittee demonstrates that the If the permittee demonstrates that the

replacement materials cost to re-erect replacement materials cost to re-erect the sign would not exceed 50% of the the sign would not exceed 50% of the value of the structural materials in the value of the structural materials in the sign, immediately prior to destruction.sign, immediately prior to destruction.

Florida’s DefinitionFlorida’s Definition

► Structural materials are all load bearing partsStructural materials are all load bearing parts

► Value of the structural materials is retail cost Value of the structural materials is retail cost newnew

► Replacement materials are all those, from any Replacement materials are all those, from any source other than the sign itself, required to source other than the sign itself, required to return the sign to its configuration immediately return the sign to its configuration immediately prior to damageprior to damage

► Value of replacement materials is retail cost newValue of replacement materials is retail cost new

Is There/Should there Is There/Should there be a natural disaster be a natural disaster

exception?exception?

Some Thoughts on Non-Some Thoughts on Non-Conforming SignsConforming Signs

► A sign becomes non-conforming because of A sign becomes non-conforming because of law or regulations, not because of improper law or regulations, not because of improper or illegal actions of the sign owner.or illegal actions of the sign owner.

► By definition, these signs are legally in By definition, these signs are legally in existence.existence.

► Current federal regulations cause the loss of Current federal regulations cause the loss of a valuable asset when the owner has done a valuable asset when the owner has done nothing improper or illegal.nothing improper or illegal.

Reasons for an ExceptionReasons for an Exception►Current regulations can make economic Current regulations can make economic

recovery more difficult.recovery more difficult.

►Current regulations require states to Current regulations require states to invest substantial funds in litigation invest substantial funds in litigation which could be used for economic which could be used for economic recovery.recovery.

► In order to enforce, states must put In order to enforce, states must put inspectors in locations which are inspectors in locations which are potentially hazardous or which could potentially hazardous or which could impede emergency operations.impede emergency operations.

A Final ReasonA Final Reason

►Current regulations, even if strictly Current regulations, even if strictly enforced, do not contribute enforced, do not contribute substantially to Highway substantially to Highway Beautification.Beautification.

Questions?Questions?