ODOT’s Process

The purpose of the R/W acquisition process …

- To obtain control of the R/W

What kind of control?

- From 23 CFR 635.309 – Construction Authorization

- Sufficient control to allow the contractor to

Enter on to all lands needed for the project and…

The rights to remove, salvage or demolish any necessary improvements

ODOT’s Process

If the contractor cannot get on to the R/W –

YOU HAVE A PROJECT MANAGEMENT PROBLEM

Decisions made early in the PDP can avoid these problems

ODOT’s Process

Active R/W acquisition occurs to the end of the PDP- Just before Construction

- There is not much decision-making at this point

ODOT’s Process

Decision-making about what R/W to acquire occurs earlier in the PDP

- These decisions affect time and cost

- Time is the length of time to acquire

- Cost is the amount of money it takes to acquire

ODOT’s Process

R/W acquisition takes a certain amount of time- Compliance to multiple laws / regulations / procedures - We’re dealing with people …

taking real property from them

and/or displacing them – forcing them to move

Say it takes 12 months to acquire parcels from a project

- There’s not much you can do to shave off time from the 12 months it takes

- But you can pick up time by starting early

ODOT’s Process

Today we’ll talk about what decision-makers need to be aware of when decisions about alignments are made..

- And the R/W needed for those alignments

- And the realities of those decisions for time and cost associated with acquiring the R/W

ODOT’s Process

What happens if those decisions require property when…

- ODOT does not have the power of eminent domain

- There is an acquisition from a property owner who can stop your project

- There are acquisitions that displace people or businesses

ODOT’s Process

Getting started early …

R/W Acquisition Before

Environmental Clearance

ODOT’s Process

Federal regulation allows us to start the acquisition process earlier than typical under certain conditions.

- Its in 23 CFR 710.203

ODOT’s Process

ODOT’s Process

ODOT’s ProcessAvoid this if you can …

R/W Acquisitions from

Agencies Where ODOT

Cannot Exercise its Power of Eminent Domain

ODOT’s ProcessBe careful of decisions about acquiring rights of way from:

● The Federal government or the State of Ohio

- ODOT does not have the power of eminent domain

- ODOT’s acquisition is subject to the bureaucracy and regulation of an other agency

- ODOT loses control

- It can take a very long time

ODOT’s ProcessOther instances when ODOT cannot exercise its right of eminent domain

- Property needed for stream mitigation as required by 401 and 404 permitting process

- Property needed to preserve land for endangered species

- Property needed for bike paths

ODOT’s ProcessIssues when ODOT does not have appropriation authority …

- The time period to complete the acquisition can be very long because ….

these acquisitions become voluntary on the part of the seller.

- If the owner refuses to sell or the seller and ODOT cannot reach agreement…

ODOT must find another property.

- These owners may not be as motivated as ODOT requiring immense amount of time/effort/cost to secure agreements.

ODOT’s ProcessA quote from one of our acquisitions where ODOT does not have the power to appropriate:

“What incentive do I have to expedite your acquisition over the other requests that I have sitting on my desk?”

ODOT’s ProcessThese agencies have their own bureaucracies and…

- They tend to move slow

- They have often been downsized

- Remaining staff is often overwhelmed and…

their focus of priority may not be the ODOT project.

- When staff are replaced, it is often with new hires who have yet to learn their process and..

they may be carrying heavier workloads than their predecessors.

All of this tends to slow the acquisition of rights of way from these agencies.

United States Post Office (2) WL Acquisitions

Directly taking 12 parking spaces

ODOT’s Process● The project is a $50,000,000 interstate widening and bridge replacement project

● The bridge will be replaced over Vine Street

● Property is needed from the US Postal Service (USPS) for slope to support the bridge structure

● The Title Report was completed on: 5/2/11

● The Date of Value on appraisal was: 1/23/12

● FMVE established for $100,000 on: 3/28/12

● The Offer was made on: 4/14/12

● And then ODOT waited, and waited, and then requested a response …

This official is responsible for post office transactions in 12 other states and has additional duties. ODOT is not his top priority!

ODOT’s Process● The USPS argued that the taking of 12 spaces affected the operations of the postal facility and employee parking.

- The taking actually affects 22 parking spaces

● Before the taking, parking was insufficient and employees were parking offsite on property owned by the Village of St. Bernard.

● Many meetings occurred.

● The district office submitted 3 different plans on different occasions to USPS attempting to mitigate the impact to the parking.

● Further meetings between ODOT and USPS determined that ODOT needed to secure 12 parking spaces offsite on property

owned by the Village of St. Bernard.

ODOT’s Process● The Village had plans to redevelop this property

● Further negotiations were required between ODOT, USPS and the Village

● Eventually the Village agreed to provide ODOT a license agreement for the exclusive use by the USPS for 12 parking spaces

- ODOT had to pay the Village $35,000 for this license agreement

- The Village passed an ordinance allowing this conveyance

- ODOT signed the license agreement on 11/19/13

● ODOT then entered into an agreement with USPS

- ODOT agreed to pay USPS $100,000 and USPS has exclusive use of the 12 parking spaces for 99 years

ODOT’s ProcessODOT received the signed instrument on 1/27/14

ODOT’s ProcessThe time for this acquisition…

- Title Report completed 05/02/2011

- USPS signs the instrument 01/27/2014

- Time Needed to Acquire 32 months / 2.5 years

Morale to the this story …

- Government acquisitions can take a long time

- Involve these agencies as stakeholders

- Plan accordingly

ODOT’s ProcessTo avoid problems in your timeline …

Involve Major Stakeholders Early

____________________

and Do Not Ignore

Major Stakeholders

ODOT’s Process How does Office of Real Estate define a major stakeholder?

- Differently from OES

- A property owner of major significance in the local community who can stop or disrupt your project.

Major stakeholders can include:

● Railroad corporations

● Hospitals

● Large Shopping Centers

● Places of large employment

● Universities and Colleges

ODOT’s ProcessStakeholders need to be involved with the development

of plans to minimize the affect to their property or their operations.

- Districts need to communicate early and frequently with stakeholders so the stakeholder is not surprised by those acquiring rights of way.

Districts need to be reactive to input from stakeholders.

- If not, a stakeholder can affect the timeline of a project.

ODOT’s Process

ODOT’s Process

ODOT’s ProcessIt’s a Design-Build Project that had been sold

ODOT needed 10 acres of permanent takes + some Ts from land owned by Norfolk Southern Railway

Company

- The NS parcel was the touchdown point of the bridge

- The whole property contained 43 to 50 acres

- Was an old rail terminal years ago

ODOT made an offer

NS rejected the offer

ODOT faced delay claims from the contractor amounting to $30,000 to $40,000 per day

ODOT’s ProcessODOT appropriated the property

- Deposited FMVE into the Cuyahoga Co. Probate Court

ODOT prepared to take possession of the property

Then…

NS had the appropriation moved to the US District Court

Argued that ODOT did not have the power to appropriate a railroad

Argued that ODOT’s taking destroyed the future use of the residue

The effect is the same as ODOT regulating railroad transportation and…

Only the Surface Transportation Board can regulate RR’s

ODOT’s ProcessThe US District Court would not rule until it studied the

case

- Unknown how long this would take

- ODOT faced delay claims of $30,000 - $40,000/day

- ODOT could possibly lose the right to appropriate

ODOT decided to settle

- Bought the entire NS property – 49.3 acres

- Paid $29,800,000

ODOT’s ProcessMorale to the story…

● Involve stakeholders early

● Educate the stakeholders about the project so they can evaluate impact to their operation

● Be reactive to their comments

Do our best to alleviate their concerns and issues

● Don’t engage appraisers until we have adequate plans

● Make sure the RR Agreement allows ODOT access onto the property to construct

● Don’t assume appropriation will solve all our problems – we lose control

ODOT’s ProcessThe most common problem in R/W acquisition…

Relocation

______________________

Getting People, Businesses and Personal Property Off the R/W so

Your Project is not Disrupted

ODOT’s ProcessIf possible – design around houses, businesses, farms, not for profit organizations

- If you don’t and you cause a displacement, here is what to expect…

ODOT’s ProcessRelocation requires a district to:

- Determine if an occupant is displaced

- Inform the occupant of their benefits

- Assist the occupant to find a replacement property

- Oversee the move to a replacement property

All of this must occur prior to the Certification of Right of Way Date.

ODOT’s ProcessRelocation takes:

● Time

● Frequent contact between the relocation agent and the displaced person

● Intense coordination to assure:

- The move occurs with minimum disruption to their lives

- All benefits are received

- The R/W is cleared by the Cert. Date

ODOT’s ProcessWhen the early decision in the PDP requires displacement – project

managers are required to:

- Afford displaced persons all the benefits they are due and…

- Have them and their property moved from the R/W needed for the project …

- On or before the Certification Date.

This requires good project management

- Requires the identification of relo parcels early in the R/W process and create a plan to proactively address relocation challenges

- Triage these parcels to be among first to start the R/W acquisition process so there is enough time to clear the project

- Track these parcels to assure there is progression towards the displaced person moving from the R/W

ODOT’s Process

Here is an upcoming relocation parcel!

ODOT’s Process

ODOT’s Process

ODOT’s Process

ODOT’s ProcessIt’s a document storage facility

- Has 300,000 boxes of medical records

- Confidential Records, Probable HIPPA mandates

The freight elevator can only accommodate 1,000 boxes per day

What’s your timeline to gain control of the R/W?

To what location will 300,000 boxes be moved to?

How long will it take to relocate this business displacee?

What are you going to do if the parcel is appropriated?

ODOT’s Process

Utilities

Coordination and Relocation Process

ODOT’s Process

When should ODOT begin considering Utilities for the project?

- Utilities should be an important consideration during the Project Initiation Package (PIP)

- While the Utilities will typically start relocation during the Right of Way phase,

it is important to begin to understand the timeframes and amount of right of way needed to

accommodate their relocation during our planning for the project

Should Utilities be addressed during a Feasibility Study?

- Utilities should be a key element in the Feasibility Study

- Efforts should be made early to minimize the impact on a utility relocation

ODOT’s Process

Who is responsible for Utility Relocation?

- District Utility Coordinator will provide the utility companies with

updated plans throughout the design stages

- District Utility Coordinator works with real estate staff during R/W

acquisition to identify utility conflicts

Does ODOT provide R/W for existing utilities?

- Utilities that are in the existing R/W either by permit or easement, must

be provided with the appropriate amount of R/W to relocate their

facilities

Do we purchase additional R/W to accommodate Utility Easements?

- If the utility is in an existing utility easement, the department may be

required to purchase additional R/W to replace this utility easement

ODOT’s Process

What documentation is provided with the Right of Way Certification Letter?

- District Utility Coordinator will provide a Utility Note to accompany the Certification

Letter

- Utility Note identifies all utilities present, and status of their relocation if necessary

- Authorization to proceed with relocation once the R/W Certification process is

complete

What is the process to approve compensable utility relocations?

- District Utility Coordinator works with utility companies to obtain the most accurate

estimate

- ODOT Central Office will approve the estimate for authorization to begin their

relocation