Real Estate Services -
Acquisition Process
Your Rights on Right-of-Way
Acquisition
Why my property?
Sometimes careful preliminary
planning, engineering and environmental studies, economic research and cost
studies indicate that the proposed location of a roadway through your locality
will provide maximum benefit for everyone. Your property may be affected
by this alignment, but an effort is made in every step of the planning process
to minimize inconvenience.
Only a part?
If only a part of your property is
needed, you will be paid for the part acquired.
How much will I be paid?
An independent licensed appraiser
will be hired by the City of Mesa to determine the value of your property at its
highest and best use.
The appraiser will contact you and
invite you to accompany him or her during the inspection of your property.
You can assist the appraiser by providing information about your property that
may enhance its value.
The acquisition.
A City representative will assist
you in the unfamiliar process of selling your property to the City. The
project and the effect it will have on your property will be explained, as well
as the amount of the City's purchase offer.
Once an agreement has been reached
for the purchase by the City, an escrow will be opened with a title company to
handle the closing details.
In most cases, the service charges
you would normally pay in a private sale, (title insurance, escrow fees, etc.)
are paid by the City. For example,
A
Typical Sale
|
|
Private Sale
|
Sale to the City
|
| Fair Market Value |
$75,000.00
|
$75,000.00
|
| |
|
|
| Approximate Costs |
|
|
| Sales Commission |
5,250.00
|
-0-
|
| Title Insurance |
422.00
|
-0-
|
| |
| Escrow Fees (seller usually pays half of the total) |
| |
86.00
|
-0-
|
| Total Costs |
5,758.00
|
-0-
|
| |
|
|
| Net Payment to Owner |
$69,242.00
|
$75,000.00
|
Income
Taxes?
Since tax law and
interpretations vary and change from time to time, you should check with your
personal tax advisor or your local office of the Internal Revenue Service
regarding your particular situation.
What about
property taxes and my mortgage?
As in the handling of
any real estate transaction, the seller is required to satisfy any outstanding
loans, liens or taxes recorded against the property. In most cases, the
City will pay prepayment penalties, service fees and processing fees that are
caused by the City's purchase of your property.
What about my
house?
In the majority of
cases, the house and other improvements on the property are included in the sale
to the City. However, during the acquisition process, the owner may choose
to retain all or part of the improvements and move them to a new location.
If the owner decides to retain all or some of the improvements, the value of
those improvements will be deducted from the purchase price.
Relocation.
The City works as far
ahead of construction as possible to insure that all right-of-way matters are
completed before construction starts. Every effort is made to keep
personal inconvenience to a minimum, and allow each family or business
sufficient time for relocation.
Would the City
pay to relocate my business or home?
A City representative
will assess your individual relocation needs at the time of purchase and inform
you of the specific relocation benefits available to you. If you qualify,
the City may pay the actual and reasonable costs of a move by a professional
mover, plus related expenses. The relocation costs are limited to a
maximum distance move of 50 miles.
Related expenses may
include:
-
Utility
disconnect and reconnect fees
-
Moving
company expenses
-
Packing
and unpacking of personal property
-
Temporary
storage of personal property
-
Printing
costs for new business letterhead
Can I
move myself?
Yes. You
may elect to receive a lump sum payment for a self-move. You are then
responsible for all costs to move yourself, your family, and your personal
property.
Will
the City relocate my tenants?
Yes.
Tenants occupying the property prior to the City making its first written offer
to purchase your property are eligible for reasonable moving expenses.
Can
I relocate now instead of waiting for construction to begin?
Yes. You
can relocate early if you desire. However, an early relocation could make
you ineligible for relocation benefits. In general, you must occupy the
affected property on the date the City makes its first written offer to purchase
in order to be eligible for relocation benefits.
Will
the City pay for the loss of business during construction?
No.
The loss of business during construction is not compensable. However, as
with all major projects, the City would do everything in its power to minimize
construction disruptions. There would be open access to and from your
business at all times.
What
happens if my building or parking area has to be modified due to the City's
construction?
The City's
goal is to return your property to a condition similar and often better to that
existing prior to the construction. Modifications to your property will be
discussed with you during the acquisition process.
What
if I do not come to terms with the City?
The City
of Mesa will work diligently to negotiate a purchase price that is mutually
acceptable to all parties. In the event a negotiated settlement cannot be
reached within the time allotted for the project, the City may elect to use its
powers of eminent domain to acquire the needed property.
The City
and the property owner can continue to negotiate a settlement during the court
process. If a negotiated settlement is not possible, the amount of
compensation will be determined by either a judge or jury at trial.
When
will I know something definite?
The answer
depends a great deal on the amount of work involved. Some projects require
extensive engineering study, planning and research. As soon as the
information is available, it will be passed along to you. |