236.7 Negotiation: Difference between revisions
m Updated Roster of Approved Contract Negotiators so that non-MoDOT readers have access to it. |
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'''<u><center>Forms</center></u>''' | |||
*[https://epg.modot.org/forms/RW/Chapter%203_Administration/A-419%20Form.pdf Acquisition Payment (Form A-419)] | |||
*[https://epg.modot.org/forms/RW/Chapter%207_Negotiation/Administrative%20Settlement%20Justification%20Letter%20Form%207.3%203%201.pdf Administrative Settlement Justification Letter (Form 7-3.3.1)] | |||
*[https://epg.modot.org/forms/RW/Chapter%207_Negotiation/Application%20Employment%20Contract%20Negotiator%20Form%207.8.1.pdf Application for Employment as Contract Negotiator (Form 7.8.1)] | |||
*[https://epg.modot.org/forms/RW/Chapter%206_Appraisal%20and%20Appraisal%20Review/Appraisal%20Review%20and%20Approval%20of%20Just%20Compensation%20Form%206.4.3.docx Appraisal Review and Approval of Just Compensation (Form 6.4.3)] | |||
*[https://epg.modot.org/forms/RW/Chapter%207_Negotiation/Contract%20Negotiator%20Performance%20Form%207.8.7.pdf Contract Negotiator Performance Evaluation (Form 7-8.7)] | |||
*[https://epg.modot.org/forms/RW/Chapter%207_Negotiation/Disclaimer%20of%20Interest%20in%20Tenant%20Owner%20Form%207.2.5C.docx Disclaimer of Interest in Tenant Owned Improvement (Form 7-2.5C)] | |||
*[https://epg.modot.org/forms/RW/Chapter%207_Negotiation/Donation%20Letter%20waiver%20of%20Appraisal%20Form%207.2.12.docx Donation Letter & Waiver of Appraisal (Form 7-2.12)] | |||
*[https://epg.modot.org/forms/RW/Chapter%207_Negotiation/Title%20VI%20Survey.doc MoDOT Public Participation Survey (Title VI Survey)] | |||
*[https://epg.modot.org/forms/RW/Chapter%207_Negotiation/Title%20VI%20Survey.pdf MoDOT Public Participation Survey (Title VI Survey) – External Version] | |||
*[https://epg.modot.org/forms/RW/Chapter%207_Negotiation/Negotiator's%20Report%20Form%207.2.12.pdf Negotiator's Report (Form 7-2.13)] | |||
*[https://epg.modot.org/forms/RW/Chapter%207_Negotiation/Offer%20Letter%20Form%20-%20Capital%20Improvements%207.6.3.docx Offer Letter Form – Capital Improvements (Form 7.6.3)] | |||
*[https://epg.modot.org/forms/RW/Chapter%207_Negotiation/Offer%20Letter%20prior%20Cond%20Form%207.2.5.D.docx Offer Letter - Combined Fee and Tenant Owners - Use Prior to Condemnation (Form 7.2.5D)] | |||
*[https://epg.modot.org/forms/RW/Chapter%207_Negotiation/Offer%20Letter%20Owner%20Form7.2.5.A.docx Offer Letter - Fee Owner (Form 7.2.5A)] | |||
*[https://epg.modot.org/forms/RW/Chapter%207_Negotiation/Offer%20Letter%20Tenant%20Owner%20No%20Declaimer%20Form%207.2.5.B.2.docx Offer Letter - Tenant Owner No Disclaimer (Form 7.2.5B(2))] | |||
*[https://epg.modot.org/forms/RW/Chapter%207_Negotiation/Offer%20Letter%20Tenant%20Form7.2.5.B.1.docx Offer Letter - Tenant Owner with Disclaimer (Form 7.2.5B(1))] | |||
*[https://epg.modot.org/forms/RW/Chapter%207_Negotiation/Preliminary%20Contract%20Form%207.8.3.docx Preliminary Contract Negotiation Fee Estimate (Form 7-8.3)] | |||
*[https://epg.modot.org/forms/RW/Chapter%207_Negotiation/Pre-trial%20report%20Exh%205E.1.docx Pre-Trial Report] | |||
*[https://epg.modot.org/forms/RW/Chapter%207_Negotiation/Prorata%20-%20Owners%20section.pdf Prorata Real Estate Tax Claim, Owner's Section (Form 7-2.22C)] | |||
*[https://epg.modot.org/forms/RW/Chapter%207_Negotiation/Prorata%20-%20MoDOT%20section.pdf Prorata Real Estate Tax Claim, MoDOT's Section (Form 7-2.22D)] | |||
*[https://epg.modot.org/forms/RW/Chapter%207_Negotiation/Renewal%20Application%20Contract%20Negotiator%20Form%207.8.1.A.pdf Renewal Application for Employment as Contract Negotiator (Form 7-8.1a)] | |||
*[https://epg.modot.org/forms/RW/Chapter%207_Negotiation/Request%20Allocation%20Gross%20Proceeds%20Form%207.7.3.pdf Request for Allocation of Gross Proceeds (Form 7-7.3)] | |||
*[https://epg.modot.org/forms/RW/Chapter%207_Negotiation/Request%20for%20TIN%20and%20Allocation%20of%20Gross%20Proceeds%20Form%207.7.3.A.docx Request for Taxpayer Identification Number and Allocation of Gross Proceeds - Sample Letter (Form 7-7.3A)] | |||
*[https://epg.modot.org/forms/RW/Chapter%207_Negotiation/Requirements%20for%20the%20Retention%20Form%207.4.2C.pdf Requirements for the Retention of Improvements (Form 7-4.2C)] | |||
*[https://epg.modot.org/forms/RW/Chapter%207_Negotiation/Roster%20of%20Approved%20Contract%20Negotiators.pdf Roster of Approved MoDOT Contract Negotiators] | |||
*[https://epg.modot.org/forms/RW/Chapter%2010_Condemnation%20Procedures/RWPA%20Checklist.pdf RWPA checklist] | |||
*[https://epg.modot.org/forms/RW/Chapter%207_Negotiation/Sample%20Ltr%20Release%20Funds%20Held%20in%20Escrow%20Form%207.1.17.docx Sample Letter - Release of Funds Held in Escrow (Form 7-1.17C)] | |||
*[https://epg.modot.org/forms/RW/Chapter%207_Negotiation/Sample%20Ltr%20Special%20Benefit%20Offer%20Letter%20Form%207.9.2.docx Sample Letter - Special Benefit Offer Letter (Form 7-9.2)] | |||
*[https://epg.modot.org/forms/RW/Chapter%207_Negotiation/Sample%20Ltr%20Transmittal%20of%20Check%20to%20Owner%20Form%207.1.17.docx Sample Letter - Transmittal of Check to Owner (Form 7-1.17A)] | |||
*[https://epg.modot.org/forms/RW/Chapter%207_Negotiation/Sample%20Ltr%20Transmittal%20of%20Checks%20to%20Escrow%20Agent%20Form%207.1.17.B.docx Sample Letter - Transmittal of Checks to Escrow Agent (Form 7-1.17B)] | |||
*[https://epg.modot.org/forms/RW/Chapter%207_Negotiation/Settlement%20Trial%20Report%20Exh%205E.2.docx Settlement/Trial Report] | |||
*[https://epg.modot.org/forms/RW/Chapter%207_Negotiation/Written%20Notice%20of%20the%20Intended%20Acq%20of%20ODA%20Form%20236.7.2.6.docx Written Notice of the Intended Acquisition for Outdoor Advertising (Form 236.7.2.6)] | |||
*Forms RW2, RW8, RW10, RW15, RW20, RW23, RW25, RW33, RW34 and RW35 are accessible in [https://netprod3.dot.missouri/eAgreements/Search/QuickSearch eAgreements]. | |||
</div> | |||
==236.7.1 General Provisions== | ==236.7.1 General Provisions== | ||
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===236.7.1.1 Authority=== | ===236.7.1.1 Authority=== | ||
The Missouri Highways and Transportation Commission is empowered by law, [ | The Missouri Highways and Transportation Commission is empowered by law, [https://revisor.mo.gov/main/OneSection.aspx?section=227 Chapter 227.120, RSMo.], to purchase, lease or condemn lands in the name of the Missouri Highways and Transportation Commission for purposes deemed necessary for the proper and economical construction and maintenance of state highways. The Commission approves by Certification the detail plans of each project and authorizes the Chief Engineer to acquire all the land, property and rights indicated on said plans by purchase or the Chief Counsel to acquire by condemnation. The Asst. to the State Design Engineer - Right of Way has authority to acquire land, property and rights as indicated on right of way plans through the district right of way offices. | ||
===236.7.1.2 Project Authorization=== | ===236.7.1.2 Project Authorization=== | ||
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===236.7.1.3 Hardship Acquisition Authorization=== | ===236.7.1.3 Hardship Acquisition Authorization=== | ||
Justification for a [ | Justification for a [https://epg.modot.org/index.php?title=236.3_Administration#Request_for_Hardship_Acquisition hardship acquisition] must be reviewed and approved by the Asst. to the State Design Engineer - Right of Way on a parcel-by-parcel basis. | ||
===236.7.1.4 Protective Buying Authorization=== | ===236.7.1.4 Protective Buying Authorization=== | ||
Justification for a protective purchase to prevent imminent development and increased costs of a parcel, must be reviewed and approved by the Right of Way | Justification for a protective purchase to prevent imminent development and increased costs of a parcel, must be reviewed and approved by the Asst. to the State Design Engineer - Right of Way on a parcel-by-parcel basis. Refer to [https://epg.modot.org/index.php?title=236.3_Administration#Contents_of_Request EPG 236.3.4.5 Advance Acquisition - Hardship and Protective Buying] for more information. | ||
===236.7.1.5 Who Conducts Negotiations=== | ===236.7.1.5 Who Conducts Negotiations=== | ||
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'''Contract Negotiations''' | '''Contract Negotiations''' | ||
Contract negotiators may conduct negotiations under written agreement as described in [[236.7 Negotiation#236.7.8 Contract Negotiation|EPG 236.7.8]]. The amount of the fee shall be established on a parcel basis. The Right of Way Section must approve contract negotiators prior to employment. The Right of Way Section maintains a Roster of Approved Contract Negotiators | Contract negotiators may conduct negotiations under written agreement as described in [[236.7 Negotiation#236.7.8 Contract Negotiation|EPG 236.7.8]]. The amount of the fee shall be established on a parcel basis. The Right of Way Section must approve contract negotiators prior to employment. The Right of Way Section maintains a Roster of Approved MoDOT Contract Negotiators. | ||
===236.7.1.6 Acquisition of Real Property Interest=== | ===236.7.1.6 Acquisition of Real Property Interest=== | ||
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===236.7.1.7 Public Information Brochure=== | ===236.7.1.7 Public Information Brochure=== | ||
A brochure entitled '''[http:// | A brochure entitled '''[http://eprojects/Templates/RW/Chapter%207_Negotiation/Pathways%20for%20Progress%20brochure.pdf Pathways for Progress]''' is available to the general public and for distribution at all public hearings for highway projects. It briefly describes the department's general procedures in the phases of appraisal, negotiation, settlement, closing, mediation and eminent domain. | ||
===236.7.1.8 Pre-Negotiation Public Relations Contact=== | ===236.7.1.8 Pre-Negotiation Public Relations Contact=== | ||
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===236.7.1.10 Initiation of Negotiations=== | ===236.7.1.10 Initiation of Negotiations=== | ||
The term "Initiation of Negotiations" relates to the date on which the department presents the | The term "Initiation of Negotiations" relates to the date on which the department presents the owners of the subject parcel, or their designated representative, a written offer for the property or rights to be acquired. When non-resident owners are involved who cannot be contacted in person, initiation of negotiations for the parcel shall be the date such owners or their designated representative received the first communication by mail or telephone from the department in which a monetary offer to purchase is made. (Certified mail with return receipt requested must be used when the above contact is made by mail to establish and document the date that the written offer is received by the relocatee or by the relocatee's representative.) | ||
===236.7.1.11 Relocation Assistance Information=== | ===236.7.1.11 Relocation Assistance Information=== | ||
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===236.7.1.12 Relocation Section Notices=== | ===236.7.1.12 Relocation Section Notices=== | ||
[ | [http://eprojects/Templates/RW/Chapter%208_Relocation/Initiation%20of%20Negotiations%20Statement%20From%20236.8.5.5.pdf "Initiation of Negotiations Statement"] (RA Form 8.5.5) | ||
This form is to be submitted to the district relocation section immediately after the first initiation of negotiation on a project, and immediately after initiation of negotiations for each individual parcel, affected by the relocation program. This form is not applicable to parcels not affected by the relocation program. | This form is to be submitted to the district relocation section immediately after the first initiation of negotiation on a project, and immediately after initiation of negotiations for each individual parcel, affected by the relocation program. This form is not applicable to parcels not affected by the relocation program. | ||
[ | [http://eprojects/Templates/RW/Chapter%208_Relocation/Acquisition%20Statement%20Form%20236.8.5.8.B.pdf "Acquisition Statement"] (RA Form 8.5.8.b) | ||
This form is to be completed by the negotiator and submitted to the relocation section immediately after all interest in the parcel is acquired when the relocation program affects the parcel. | This form is to be completed by the negotiator and submitted to the relocation section immediately after all interest in the parcel is acquired when the relocation program affects the parcel. | ||
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:*Offer letter | :*Offer letter | ||
In order to make an informed explanation of the proposed acquisition to an owner, the negotiator should make a comprehensive study of the plans, title report, documents and appraisal report. | In order to make an informed explanation of the proposed acquisition to an owner, the negotiator should make a comprehensive study of the plans, title report, documents and appraisal report. The negotiator should also know what documents will be required for closing depending on ownership and value of the property. The checklist of items (provided in the links following), include those required documents, depends on whether [https://epg.modot.org/forms/RW/Chapter%207_Negotiation/MoDOT%20Verification%20of%20Signatory%20on%20Conveyance%20Documents.doc MoDOT] or a [https://epg.modot.org/forms/RW/Chapter%207_Negotiation/Negotiator%20Packet%20Table%20of%20Contents%20-%20Closing%20with%20Title%20Company.doc title company] will be conducting the closing. | ||
When acquiring realty rights, verification that the correct entity has executed the conveyance document is important. Refer to [https://epg.modot.org/forms/RW/Chapter%207_Negotiation/MoDOT%20Verification%20of%20Signatory%20on%20Conveyance%20Documents.pdf MoDOT Verification of Signatory on Conveyance Documents] for guidance. | |||
The following information must be entered in the Parcel Acquisition screen in RWPA for each parcel being acquired: Parcel Number, Classification, Status and any Fee Holder and Tenants. | |||
===236.7.1.14 Delivery of Payments=== | ===236.7.1.14 Delivery of Payments=== | ||
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Upon personal delivery of each check the responsible right of way employee is to obtain the signature of the recipient acknowledging receipt of the payment. | Upon personal delivery of each check the responsible right of way employee is to obtain the signature of the recipient acknowledging receipt of the payment. | ||
Payments mailed to owners shall be by certified mail with return receipt requested. A [ | Payments mailed to owners shall be by certified mail with return receipt requested. A [https://epg.modot.org/forms/RW/Chapter%207_Negotiation/Sample%20Ltr%20Transmittal%20of%20Check%20to%20Owner%20Form%207.1.17.docx sample letter] (Form 7-1.17A) is available for sending checks to owners/tenants. | ||
The Mailed Check Letter and Receipt of Check must be entered in eProjects under the applicable project and parcel. | |||
The following information must be entered in the Parcel Acquisition screen in RWPA for each parcel being acquired: Physical Possession Obtained and Legal Possession obtained. | |||
'''Escrow Agents''' | '''Escrow Agents''' | ||
Payments to escrow agents may be delivered by any person or by certified mail with return receipt requested. Submission of payments to escrow agents shall be [ | Payments to escrow agents may be delivered by any person or by certified mail with return receipt requested. Submission of payments to escrow agents shall be [https://epg.modot.org/forms/RW/Chapter%207_Negotiation/Sample%20Ltr%20Transmittal%20of%20Checks%20to%20Escrow%20Agent%20Form%207.1.17.B.docx by letter] (Form 7-1.17B). Owners are to be notified in writing of the date their payment is delivered to escrow agent. | ||
'''Release of Funds in Escrow''' | '''Release of Funds in Escrow''' | ||
To release funds retained in escrow for removal of improvements, etc., the escrow agent shall be notified by [ | To release funds retained in escrow for removal of improvements, etc., the escrow agent shall be notified by [https://epg.modot.org/forms/RW/Chapter%207_Negotiation/Sample%20Ltr%20Release%20Funds%20Held%20in%20Escrow%20Form%207.1.17.docx written notice] (Form 7-2.17C) with a copy mailed to owner involved. Escrow agents shall furnish proof of disbursement of all funds for parcel files. | ||
===236.7.1.15 Recording of Documents=== | ===236.7.1.15 Recording of Documents=== | ||
All documents conveying land, easements, realty rights, mortgage releases and restrictive easements to the Commission, regardless of the consideration recited therein, shall be recorded in the appropriate recorder of deeds office. | All documents conveying land, easements, realty rights, mortgage releases and restrictive easements to the Commission, regardless of the consideration recited therein, shall be recorded in the appropriate recorder of deeds office and uploaded in eProjects under the applicable project and parcel. | ||
The following data fields must be entered in RWPA on the Deeds screen, including when the acquisitions are donated: Fee Holder Deed Signed (date), Deed Recorded (date), Book Recorded No., Page Recorded No., Document No.(whichever are applicable), check the free deed box if the parcel was donated. Area acquired: provide the amount of acres/square feet acquired in each category: permanent right of way, temporary easement, permanent easement, utility easement and unity of measure. | |||
It is not required to record disclaimers, rights of entry, releases of outdoor advertising rights and signs acquired, releases for LP tanks, or other documents that do not convey an interest in land being acquired. If tenants have a recorded lease, it may be necessary to record any of the above documents that may impact lease provisions. | It is not required to record disclaimers, rights of entry, releases of outdoor advertising rights and signs acquired, releases for LP tanks, or other documents that do not convey an interest in land being acquired. If tenants have a recorded lease, it may be necessary to record any of the above documents that may impact lease provisions. | ||
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===236.7.2.3 Prompt Offer of Just Compensation=== | ===236.7.2.3 Prompt Offer of Just Compensation=== | ||
All offers of Approved Just Compensation shall be promptly presented to property owners or their designated representatives. A minimum offer of $ | All offers of Approved Just Compensation shall be promptly presented to property owners or their designated representatives. A minimum offer of $500 shall be made to a property owner when the appraised value is determined to be less than $500. It may be appropriate to reduce the minimum offer under certain circumstances with the approval of the Assistant to State Design Engineer – Right of Way. If approved, a reduced minimum offer will apply to the entire project. District management should determine the appropriate timing for delivery of offers within the scope of good negotiating practices. An offer letter must be presented to the owner at least 30 days prior to filing a condemnation petition, as further described in [[236.10 Right Of Way Condemnation|EPG 236.10]]. | ||
===236.7.2.4 Offer Letter and Supporting Documentation=== | ===236.7.2.4 Offer Letter and Supporting Documentation=== | ||
Use [ | Use [https://epg.modot.org/forms/RW/Chapter%207_Negotiation/Offer%20Letter%20Owner%20Form7.2.5.A.docx Form 7.2.5A], [https://epg.modot.org/forms/RW/Chapter%207_Negotiation/Offer%20Letter%20Tenant%20Form7.2.5.B.1.docx 7.2.5B(1)], or [https://epg.modot.org/forms/RW/Chapter%207_Negotiation/Offer%20Letter%20Tenant%20Owner%20No%20Declaimer%20Form%207.2.5.B.2.docx 7.2.5B(2)]. Delete unused phrases and instructions. Use the date the offer letter is delivered or mailed to the owner. | ||
'''A. Delivery of Offer Letter''' | '''A. Delivery of Offer Letter''' | ||
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:*Offer letter | :*Offer letter | ||
:*Appraisal or waiver valuation | :*Appraisal or waiver valuation | ||
:*[http:// | :*[http://eprojects/Templates/RW/Chapter%207_Negotiation/Pathways%20for%20Progress%20brochure.pdf Pathways for Progress brochure] | ||
:*Conveyance documents | :*Conveyance documents | ||
:*Blank Escrow Agreement, if applicable | :*Blank Escrow Agreement, if applicable | ||
:*Pro Rata Real Estate Tax Claim form | :*Pro Rata Real Estate Tax Claim form | ||
:*Plan sheet, portion of plan sheet or plat illustrating the acquisition and the remainder | :*Plan sheet, portion of plan sheet or plat illustrating the acquisition and the remainder | ||
:*When applicable and appropriate, provide [ | :*When applicable and appropriate, provide [https://epg.modot.org/forms/RW/Chapter%207_Negotiation/Request%20Allocation%20Gross%20Proceeds%20Form%207.7.3.pdf Request for Allocation of Gross Proceeds], (Form 7-7.3). | ||
MoDOT's External Civil Rights Division is in charge of delivering MoDOT’s Public Participation Survey (Title VI Survey) to property owners and recording the information returned in the Parcel Acquisition screen in RWPA under the applicable project and parcel. | |||
'''D. Donation''' | '''D. Donation''' | ||
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'''A. Fee Owners''' | '''A. Fee Owners''' | ||
Applicable portions of the[ | Applicable portions of the [https://epg.modot.org/forms/RW/Chapter%207_Negotiation/Offer%20Letter%20Owner%20Form7.2.5.A.docx Offer Letter - Fee Owner] (Form 7.2.5A), along with the appraisal or waiver valuation, are to be delivered to the fee owner or a designated representative. | ||
'''B. Tenant Owners''' | '''B. Tenant Owners''' | ||
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:1. Offer Letter - Fee Interest Acquired or Disclaimed | :1. Offer Letter - Fee Interest Acquired or Disclaimed | ||
:[ | :[https://epg.modot.org/forms/RW/Chapter%207_Negotiation/Offer%20Letter%20Tenant%20Form7.2.5.B.1.docx Offer Letter-Tenant Owner] (Form 7.2.5B(1)) is to be used for offers to owners of tenant-owned improvements when the owners of the land have conveyed their interest, or when the landowners have disclaimed all interest in the tenant-owned improvements. | ||
:2. Offer Letter - Fee Interest '''Not''' Acquired or Disclaimed | :2. Offer Letter - Fee Interest '''Not''' Acquired or Disclaimed | ||
:When the land owners have not conveyed or disclaimed their interests in the tenant-owned improvements, the offer to tenant-owners will be made by use of a letter designated as [ | :When the land owners have not conveyed or disclaimed their interests in the tenant-owned improvements, the offer to tenant-owners will be made by use of a letter designated as [https://epg.modot.org/forms/RW/Chapter%207_Negotiation/Offer%20Letter%20Tenant%20Owner%20No%20Declaimer%20Form%207.2.5.B.2.docx Offer Letter - Tenant Owner No Disclaimer], (Form 7.2.5B(2)) with a [https://epg.modot.org/forms/RW/Chapter%207_Negotiation/Disclaimer%20of%20Interest%20in%20Tenant%20Owner%20Form%207.2.5C.docx Disclaimer] (Form 7.2.5C) attached. | ||
:The tenant offer will be conditioned upon the tenant obtaining execution of the necessary disclaimers. Completion of the transaction including [http:// | :The tenant offer will be conditioned upon the tenant obtaining execution of the necessary disclaimers. Completion of the transaction including Release of Structures and Leasehold, (CCO RW15) (Form RW15 is accessible in [http://sp/sites/eagreements/SitePages/Home.aspx eAgreements]) and payment shall not be made unless the landowners convey their interest by deed or provide a disclaimer. | ||
'''C. Disclaimer by Owner in Tenant Owned Improvements''' | '''C. Disclaimer by Owner in Tenant Owned Improvements''' | ||
When a separate amount of just compensation is approved for an improvement owned by a party other than the owner of the land, payment for such improvement shall not be made unless the owner of the land disclaims all interest in the tenant-owned improvement. The fee owner may disclaim interest in such improvement by execution of either a deed of conveyance of right, title and interest or a [ | When a separate amount of just compensation is approved for an improvement owned by a party other than the owner of the land, payment for such improvement shall not be made unless the owner of the land disclaims all interest in the tenant-owned improvement. The fee owner may disclaim interest in such improvement by execution of either a deed of conveyance of right, title and interest or a [https://epg.modot.org/forms/RW/Chapter%207_Negotiation/Disclaimer%20of%20Interest%20in%20Tenant%20Owner%20Form%207.2.5C.docx Disclaimer] (Form 7.2.5(C)). | ||
When the fee owner does not execute a deed or a disclaimer, the offer of just compensation for the improvement and the disclaimer will be presented to the tenant owner with the condition that settlement will be made provided that the tenant is successful in obtaining execution of the necessary disclaimers. | When the fee owner does not execute a deed or a disclaimer, the offer of just compensation for the improvement and the disclaimer will be presented to the tenant owner with the condition that settlement will be made provided that the tenant is successful in obtaining execution of the necessary disclaimers. | ||
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'''D. Combined Fee-Owner and Tenant-Owner Offer Letter for Condemnation Purposes''' | '''D. Combined Fee-Owner and Tenant-Owner Offer Letter for Condemnation Purposes''' | ||
Immediately prior to condemnation proceedings for a parcel where tenant-owned structures are involved, a letter designated [ | Immediately prior to condemnation proceedings for a parcel where tenant-owned structures are involved, a letter designated [https://epg.modot.org/forms/RW/Chapter%207_Negotiation/Offer%20Letter%20prior%20Cond%20Form%207.2.5.D.docx Offer Letter - Combined Fee and Tenant Owners], (Form 7.2.5D), is to be presented to all fee owners of record or their designated representative with a copy of the letter to all tenant owners. | ||
This offer will be the total of the amounts of just compensation approved for fee and tenant owners. The brochure, deed and valuation document are not required with this letter. | This offer will be the total of the amounts of just compensation approved for fee and tenant owners. The brochure, deed and valuation document are not required with this letter. | ||
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:'''1'''. Fee Owners | :'''1'''. Fee Owners | ||
:The first paragraph of [ | :The first paragraph of [https://epg.modot.org/forms/RW/Chapter%207_Negotiation/Offer%20Letter%20Owner%20Form7.2.5.A.docx Offer Letter - Fee Owner] (Form 7.2.5A) will be omitted and replaced with the | ||
following paragraph for revised offers. | following paragraph for revised offers. | ||
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:'''2'''. Tenant Owners | :'''2'''. Tenant Owners | ||
:The first paragraph of Offer Letter - Tenant Owner, Forms [ | :The first paragraph of Offer Letter - Tenant Owner, Forms [https://epg.modot.org/forms/RW/Chapter%207_Negotiation/Offer%20Letter%20Tenant%20Form7.2.5.B.1.docx 7.2.5B(1)] and [https://epg.modot.org/forms/RW/Chapter%207_Negotiation/Offer%20Letter%20Tenant%20Owner%20No%20Declaimer%20Form%207.2.5.B.2.docx 7.2.5B(2)], will be omitted and replaced with the following paragraph for revised offers. | ||
::"In a previous letter you were offered the sum of $____________ for certain structures located on property needed for improvement of the above highway project. It is necessary to revise that offer previously made to you because _____________________." | ::"In a previous letter you were offered the sum of $____________ for certain structures located on property needed for improvement of the above highway project. It is necessary to revise that offer previously made to you because _____________________." | ||
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'''D. Tenant-Owned Improvements''' | '''D. Tenant-Owned Improvements''' | ||
Tenant-owned improvements will be acquired by | Tenant-owned improvements will be acquired by Release of Structures and Leasehold, (Form 7-2.7D (CCO RW15)). (Form RW15 is accessible in [http://sp/sites/eagreements/SitePages/Home.aspx eAgreements].) | ||
:'''1'''. Improvements Acquired or Damaged - Release of Structures and Leasehold | :'''1'''. Improvements Acquired or Damaged - Release of Structures and Leasehold | ||
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:Eminent Domain Law provides the same rights and protections to tenants and fee owners. Any tenant has the right to reject payment for improvements as outlined above and obtain payment for such property interests through eminent domain proceedings applicable to Missouri law. In these situations it will be necessary to condemn all interest in the property including the fee owner. | :Eminent Domain Law provides the same rights and protections to tenants and fee owners. Any tenant has the right to reject payment for improvements as outlined above and obtain payment for such property interests through eminent domain proceedings applicable to Missouri law. In these situations it will be necessary to condemn all interest in the property including the fee owner. | ||
<div id="E. Acquisition of Outdoor Advertising Billboards"></div> | |||
'''E. Acquisition of Outdoor Advertising Billboards | '''E. Acquisition of Outdoor Advertising Billboards''' | ||
Outdoor advertising structures are defined as all signs, billboards, drawings or paintings which advertise activities conducted elsewhere or services and/or products provided other than at the subject property. They should not be confused with on-premise signs, which advertise activities conducted on the premises or services and/or products provided on the property. | Outdoor advertising structures are defined as all signs, billboards, drawings or paintings which advertise activities conducted elsewhere or services and/or products provided other than at the subject property. They should not be confused with on-premise signs, which advertise activities conducted on the premises or services and/or products provided on the property. | ||
It has been determined that owners of outdoor advertising signs have the right or obligation to remove such structures at the termination of the lease or agreement. Therefore, such structures are generally acquired | It has been determined that owners of outdoor advertising signs have the right or obligation to remove such structures at the termination of the lease or agreement. Therefore, such structures are generally acquired with a quitclaim deed, as addressed above, with the following exceptions. | ||
:'''1'''. Outdoor Advertising Structures Considered Real Estate | :'''1'''. Outdoor Advertising Structures Considered Real Estate | ||
:All outdoor advertising structures shall be valued | :All outdoor advertising structures shall be valued as real estate and an offer made for just compensation. In the event a sign is categorized as Conforming out of Standard by the Outdoor Advertising staff, the right of way staff will follow the Sign Agreement Reset Program procedures. | ||
:'''2'''. Salvage of Outdoor Advertising Billboards | :'''2'''. Salvage of Outdoor Advertising Billboards | ||
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:Retention and salvage of outdoor advertising structures is permitted, provided the offer is reduced by the salvage value established in the valuation process. The salvage value may be waived or reducted during negotiations to reach an administrative settlement. | :Retention and salvage of outdoor advertising structures is permitted, provided the offer is reduced by the salvage value established in the valuation process. The salvage value may be waived or reducted during negotiations to reach an administrative settlement. | ||
:As a means to facilitate negotiations, district right of way may agree to leave the sign in place for a specified period of time by use of an Extension of Possession Agreement (CCO | :As a means to facilitate negotiations, district right of way may agree to leave the sign in place for a specified period of time by use of an Extension of Possession Agreement (CCO RW12). The agreement must state a maximum time period for the sign to be left in place, and a physical possession date must be agreed to by the parties. The physical possession date shall be specific, and not merely include phrases like, “until construction of the project,” “until needed for construction,” etc. For more information on removal procedures, refer to [https://epg.modot.org/index.php?title=236.5_Property_Management#236.5.26_Acquired_Improvements EPG 236.5.26]. | ||
:Outdoor advertising structures located partially within the acquisition area shall be totally removed unless the owner of the sign retains the structure and modifies it to completely avoid Commission owned property. Contact your local outdoor advertising permit specialist for specific requirements related to modifying existing outdoor advertising structures. See [[236.16 Outdoor Advertising|EPG 236.16]] for additional information pertaining to outdoor advertising. | :Outdoor advertising structures located partially within the acquisition area shall be totally removed unless the owner of the sign retains the structure and modifies it to completely avoid Commission owned property. Contact your local outdoor advertising permit specialist for specific requirements related to modifying existing outdoor advertising structures. See [[236.16 Outdoor Advertising|EPG 236.16]] for additional information pertaining to outdoor advertising. | ||
The Outdoor Advertising Profile Report, which is generated by the outdoor advertising permit specialist, shall be completed by district right of way and returned to the outdoor advertising permit specialist once the acquisition of the billboard is complete. | The Outdoor Advertising Profile Report, which is generated by the outdoor advertising permit specialist, shall be completed by district right of way and returned to the outdoor advertising permit specialist once the acquisition of the billboard is complete. | ||
'''Sign Agreement Reset Program – Partial Waiver and Reset Agreement''' | |||
Legislation from 2012, HB1402, allows sign owners who meet the conforming out of standard sign criteria the option to accept just compensation or waive a portion of their right to just compensation and reset a qualifying sign. Sign owners that choose to accept just compensation are eligible to salvage the sign, however the sign permit will be cancelled by the Outdoor Advertising Specialist. | |||
Conforming out of standard signs are categorized as signs that fail to meet the current statutory and administrative rule requirements but comply with the terms of the federal state agreement and meet the statutory requirements of 1999. (See [[236.16 Outdoor Advertising#236.16.7.3 Conforming Out of Standard|EPG 236.16.7.3 Conforming Out of Standard]].) | |||
Displaced signs will be reviewed by outdoor advertising staff to determine the sign qualifications. If the qualifying sign meets the reset requirements as determined by the Outdoor Advertising Profile Report (refer to [[236.16 Outdoor Advertising#236.16.19 Sign Structures Affected by Highway Projects|EPG 236.16.19 Sign Structures Affected by Highway Projects]]), Right of Way staff will offer just compensation to the sign owner for the purchase of the sign. The sign owner will also be offered the sign reset option that allows them to move the sign elsewhere within the same property or on an adjoining property. It is the sign owners choice to accept either just compensation or the reset option. | |||
Guidelines for the Conforming Out of Standard Sign Acquisition: | |||
* Right of Way staff will notify outdoor advertising staff of an affected sign. Affected sign includes billboards located within the project limits. | |||
* Outdoor Advertising staff will complete the Outdoor Advertising Profile Report (EPG 236.16.19) to determine qualification of the affected sign and provide a copy to the Right of Way Manager. | |||
* If the sign is classified as Conforming Out of Standard, the right of way staff will provide the sign owner the [https://epg.modot.org/forms/RW/Chapter%207_Negotiation/Written%20Notice%20of%20the%20Intended%20Acq%20of%20ODA%20Form%20236.7.2.6.docx Written Notice of the Intended Acquisition for Outdoor Advertising (Form 236.7.2.6)]. | |||
* Right of Way staff will appraise the affected sign for just compensation and appraise the [[236.6 Appraisal and Appraisal Review#Reset Option|reset option compensation]] as described in the appraisal guidance. | |||
* Right of Way staff will obtain the disclaimer from the property owner. (Refer to [[#236.7.2.5 Offer Letter Formats|EPG 236.7.2.5 Offer Letter Formats]].) | |||
* Right of Way staff will prepare the offer letter for just compensation. | |||
* Right of Way staff will prepare the Partial Waiver and Reset Agreement with the assistance from the Outdoor Advertising Specialist and provide the Outdoor Advertising Specialist a copy. The reset compensation is a solitary payment and will not be supplemented by any other payment type. | |||
* The Right of Way staff will present the offer letter and explain the reset option to the sign owner who will choose their preferred option of compensation. It may be beneficial for the Outdoor Advertising Specialist to accompany the right of way staff at this meeting. | |||
* If the sign owner chooses the reset option, the sign owner will obtain the necessary support documents outlined within the Partial Waiver and Reset Agreement, execute the Agreement, and return it to the Right of Way Specialist. The Right of Way Specialist will provide a copy of the Agreement to the Outdoor Advertising Specialist who will amend the sign permit. | |||
* The Right of Way Specialist will process the payment outlined within the Partial Waiver and Reset Agreement and retain a portion of the reset payment within an escrow account. The retained portion should equal the cost of the sign removal in the event the sign owner does not remove the existing sign. | |||
* The Outdoor Advertising Specialist will conduct a final inspection to determine if the sign has been removed from the construction limits within the allotted time frame. (Refer to [[236.16 Outdoor Advertising#236.16.19 Sign Structures Affected by Highway Projects|EPG 236.16.19 Sign Structures Affected by Highway Projects]].) | |||
* The Outdoor Advertising Specialist will notify Right of Way that the sign has been removed from the construction limits. Right of Way will notify the Escrow Agent to release the funds in escrow to the sign owner. | |||
If the sign owner does not remove the sign from the project limits, Right of Way will notify the Project Manager to include the demolition in the construction contract. | |||
In the event the sign owner refuses just compensation and the reset option, the sign will be condemned as outlined in [[236.10 Right Of Way Condemnation#236.10.1 Introduction|EPG 236.10.1 Introduction]]. | |||
'''F. On-premise Signs''' | '''F. On-premise Signs''' | ||
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'''G. Existing Private Utility Easements''' | '''G. Existing Private Utility Easements''' | ||
On projects where an existing utility is located on a private easement, and the limits of the new land acquired for the project will encompass the existing private utility easement, the district shall secure said easement rights by quitclaim deed (CCO RW2). The district utility engineer will work directly with the utility owners to obtain said quitclaim deeds. For information related to how to prepare the description to be included in the quitclaim deed, see [ | On projects where an existing utility is located on a private easement, and the limits of the new land acquired for the project will encompass the existing private utility easement, the district shall secure said easement rights by quitclaim deed (CCO RW2). The district utility engineer will work directly with the utility owners to obtain said quitclaim deeds. For information related to how to prepare the description to be included in the quitclaim deed, see [https://epg.modot.org/index.php?title=236.4_Description_Writing_and_Titles#236.4.6.6_Preparing_Quitclaim_Deeds_for_Execution_by_Utility_Companies_.28See_EPG_236.7.29 EPG 236.4.6.6]. | ||
'''H. Acquisition of Mobile Homes''' | '''H. Acquisition of Mobile Homes''' | ||
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During the first contact the negotiator is to: | During the first contact the negotiator is to: | ||
:*Provide brochure, [http:// | :*Provide brochure, [http://eprojects/Templates/RW/Chapter%207_Negotiation/Pathways%20for%20Progress%20brochure.pdf Pathways for Progress] | ||
:*Review title information | :*Review title information | ||
:*Explain the right of way plans and provide plan sheet, portion of plan sheet, or plat illustrating the acquisition and the remainder | :*Explain the right of way plans and provide plan sheet, portion of plan sheet, or plat illustrating the acquisition and the remainder | ||
:*Explain the acquisition procedures and provide blank | :*Explain the acquisition procedures and provide blank Escrow Agreement, (Form 7-4.2 (CCO RW8)) if applicable | ||
:*Explain Proration of Taxes and provide [ | :*Explain Proration of Taxes and provide [https://epg.modot.org/forms/RW/Chapter%207_Negotiation/Prorata%20-%20Owners%20section.pdf Prorata Real Estate Tax Claim, Owner's Section], (Form 7-2.22C) | ||
:*Provide the written Offer Letter | :*Provide the written Offer Letter | ||
:*Provide the appraisal or waiver valuation | :*Provide the appraisal or waiver valuation | ||
:*Provide conveyance documents | :*Provide conveyance documents | ||
:*Provide or agree to obtain answers to the owner’s questions | :*Provide or agree to obtain answers to the owner’s questions | ||
:* | :*Provide a Vendor Input Form or a W9 for completion. | ||
During the second contact the negotiator should review the items discussed during the first contact. The negotiator should give special attention to making sure the property owner understands the plans and the effect on the remaining property. Any additional questions the owner has should be answered. | During the second contact the negotiator should review the items discussed during the first contact. The negotiator should give special attention to making sure the property owner understands the plans and the effect on the remaining property. Any additional questions the owner has should be answered. | ||
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During the third contact the negotiator should attempt to get the owner to accept or reject the offer. If the owner fails to accept or reject the offer, or does reject the offer, the mediation and condemnation process are to be explained. The owner is to be advised that negotiations can continue until such time as the condemnation commissioners' report is filed. | During the third contact the negotiator should attempt to get the owner to accept or reject the offer. If the owner fails to accept or reject the offer, or does reject the offer, the mediation and condemnation process are to be explained. The owner is to be advised that negotiations can continue until such time as the condemnation commissioners' report is filed. | ||
Obtain a taxpayer identification number (TIN) using a Vendor Input Form or a W9, whichever is applicable, as shown in [[236.7 Negotiation#236.7.7 1099 Reporting of Acquisitions|EPG 236.7.7]]. If a husband and wife own the property, either one can provide their TIN. Partnerships and trusts should have their own TIN that should be used for reporting real estate transactions. If there is more than one owner, other than a husband and wife, partnership or trust, each owner that is expected to receive an allocation of the proceeds shall be given a form on which to provide their TIN. | |||
During negotiations, the negotiator’s objective is to promote understanding of the design and reasonableness of the offer. If the owner disagrees with the offer, the negotiator should attempt to determine the reasoning of the owner’s opinion of value or their objections to design considerations. The owner’s opinion of value, reasoning, counteroffers and objections are to be documented in the negotiator’s report and discussed with the chief negotiator or district right of way manager. If the negotiator is unable to acquire the property for the approved offer, an administrative settlement may be considered as described in [[236.7 Negotiation#236.7.3 Administrative and Legal Settlements|EPG 236.7.3]]. | During negotiations, the negotiator’s objective is to promote understanding of the design and reasonableness of the offer. If the owner disagrees with the offer, the negotiator should attempt to determine the reasoning of the owner’s opinion of value or their objections to design considerations. The owner’s opinion of value, reasoning, counteroffers and objections are to be documented in the negotiator’s report and discussed with the chief negotiator or district right of way manager. If the negotiator is unable to acquire the property for the approved offer, an administrative settlement may be considered as described in [[236.7 Negotiation#236.7.3 Administrative and Legal Settlements|EPG 236.7.3]]. | ||
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'''A. Definition of Uneconomic Remnant''' | '''A. Definition of Uneconomic Remnant''' | ||
"A parcel of real property in which the owner is left with an interest after the partial acquisition of the owner's property, and in which the acquiring agency has determined has little or no value or utility to the owner." ([ | "A parcel of real property in which the owner is left with an interest after the partial acquisition of the owner's property, and in which the acquiring agency has determined has little or no value or utility to the owner." ([https://www.law.cornell.edu/cfr/text/49/24.2 49 CFR 24.2 (w)], 10/1/93) | ||
'''B. Offer to Purchase Uneconomic Remnants''' | '''B. Offer to Purchase Uneconomic Remnants''' | ||
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The Commission will not condemn for the acquisition of an uneconomic remnant. | The Commission will not condemn for the acquisition of an uneconomic remnant. | ||
The following data fields must be entered in the Remnants Screen in RWPA under the applicable project and parcel: Remnant Number, Status, Physical Possession Obtained, Payroll Amount, Payroll Date, Deed Signed Deed Recorded, Area Acquired, and Unit of Measure. | |||
'''C. Outright Sale of Uneconomic Remnants''' | '''C. Outright Sale of Uneconomic Remnants''' | ||
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'''B. Donation/Waiver of Appraisal Letter''' | '''B. Donation/Waiver of Appraisal Letter''' | ||
Prior to acceptance of such donation, the negotiator must inform the owner of the right to receive just compensation for the property. The negotiator must obtain a signed [ | Prior to acceptance of such donation, the negotiator must inform the owner of the right to receive just compensation for the property. The negotiator must obtain a signed [https://epg.modot.org/forms/RW/Chapter%207_Negotiation/Donation%20Letter%20waiver%20of%20Appraisal%20Form%207.2.12.docx Donation/Waiver Letter], (Form 7-2.12), which acknowledges the owner’s right to receive just compensation as determined by an appraisal. Should the owner refuse to sign the statement yet still wants to donate the property, the [http://eprojects/Templates/RW/Chapter%207_Negotiation/Negotiator's%20Report%20Form%207.2.12.pdf Negotiator's Report] shall be fully documented as to the owner being advised of their rights and any reason for refusing to sign the letter. | ||
'''C. Donation of Temporary Easement Without Waiver Letter''' | '''C. Donation of Temporary Easement Without Waiver Letter''' | ||
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===236.7.2.12 Negotiator’s Report and Contact Log=== | ===236.7.2.12 Negotiator’s Report and Contact Log=== | ||
A [ | A [http://eprojects/Templates/RW/Chapter%207_Negotiation/Negotiator's%20Report%20Form%207.2.12.pdf Negotiator’s Report], (Form 7-2.13), shall be completed with attachments and signed by the negotiator upon termination of or completion of negotiations for each parcel. A log of all contacts with the owner or representative shall be completed and attached to the Negotiator’s Report. The information for each contact should include the date and place of each contact, parties contacted, offers made, counteroffers, issues raised by the owner, reasons settlement could not be reached, and any other pertinent data. Each contact entry shall include the name or initials of the person who prepared the entry. | ||
When negotiations are unsuccessful, and the negotiator considers further attempts to negotiate to be futile, recommendations for action should be recorded. | When negotiations are unsuccessful, and the negotiator considers further attempts to negotiate to be futile, recommendations for action should be recorded. | ||
The negotiator’s report must be uploaded to eProjects under the applicable project and parcel. | |||
===236.7.2.13 Payment Prior to Possession=== | ===236.7.2.13 Payment Prior to Possession=== | ||
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Owner and tenant occupants of buildings acquired for highway purposes shall not be required to move from a dwelling or to move a business, nonprofit organization or farm operation without at least 90 days' written notice of the date by which such move is required. | Owner and tenant occupants of buildings acquired for highway purposes shall not be required to move from a dwelling or to move a business, nonprofit organization or farm operation without at least 90 days' written notice of the date by which such move is required. | ||
Possession policies and procedures for sending notices to vacate are contained in [[236.8 Relocation Assistance Program#236.8. | Possession policies and procedures for sending notices to vacate are contained in [[236.8 Relocation Assistance Program#236.8.14 Relocation Assistance Program - Possession Policies and Vacancy Notices|EPG 236.8.14 Relocation Assistance Program - Possession Policies and Vacancy Notices]]. | ||
===236.7.2.16 Extension of Possession and Fair Rental Value=== | ===236.7.2.16 Extension of Possession and Fair Rental Value=== | ||
When the proposed letting schedule permits, an owner or tenant may be authorized an extension of possession based on a monthly rental rate, as described in [[236.5 Property Management#236.5.26 Acquired Improvements|EPG 236.5.26 Acquired Improvements]]. An | When the proposed letting schedule permits, an owner or tenant may be authorized an extension of possession based on a monthly rental rate, as described in [[236.5 Property Management#236.5.26 Acquired Improvements|EPG 236.5.26 Acquired Improvements]]. An Extension of Possession Agreement, (Form 5-6.4 (CCO RW12)), (Form RW12 is accessible in [http://sp/sites/eagreements/SitePages/Home.aspx eAgreements]) shall be used when the original occupant is allowed to extend possession up to one year. If it is necessary to extend possession beyond the one year time period, the Extension of Possession Agreement shall be canceled and replaced with a Lease of Premises Agreement, (Form 5-5.5 (CCO RW14)). (Form RW14 is accessible in [http://sp/sites/eagreements/SitePages/Home.aspx eAgreements].) An extension of possession that is expected to last beyond one year is to be written on a Lease of Premises Agreement rather than an Extension of Possession Agreement. | ||
When an owner or tenant is granted an extension of possession, a monthly rental rate shall be established and should be collected in advance for each monthly period of extension. The rental value for owner-occupied and tenant-occupied property will be determined by the method established in [[236.5 Property Management#236.5.26 Acquired Improvements|EPG 236.5.26 Acquired Improvements]]. | When an owner or tenant is granted an extension of possession, a monthly rental rate shall be established and should be collected in advance for each monthly period of extension. The rental value for owner-occupied and tenant-occupied property will be determined by the method established in [[236.5 Property Management#236.5.26 Acquired Improvements|EPG 236.5.26 Acquired Improvements]]. | ||
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===236.7.2.17 Coercion=== | ===236.7.2.17 Coercion=== | ||
The Uniform Act forbids an acquiring agency from taking any coercive action in order to compel | The Uniform Act forbids an acquiring agency from taking any coercive action in order to compel owners to agree on a price for their property. All negotiations shall be conducted in such a manner as to avoid coercing owners to reach agreement. Condemnation shall not be used as a threat. The property owners shall be given a reasonable amount of time to consider the offer and to obtain professional advice or assistance if they so desire. The agency shall not advance the time of condemnation, or defer negotiations or condemnation or the deposit of funds with the court, in order to induce an agreement on the compensation to be paid for the property. | ||
===236.7.2.18 Non-Discrimination=== | ===236.7.2.18 Non-Discrimination=== | ||
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Should the mediation process not be successful with the parties failing to reach agreement, the needed property and property rights will then be acquired by the normal condemnation process. | Should the mediation process not be successful with the parties failing to reach agreement, the needed property and property rights will then be acquired by the normal condemnation process. | ||
Mediation shall be offered, in writing, to all property owners (who have not settled) prior to filing a condemnation petition, unless approval is received from the Right of Way | Mediation shall be offered, in writing, to all property owners (who have not settled) prior to filing a condemnation petition, unless approval is received from the Asst. to the State Design Engineer - Right of Way and the [http://sp/sites/cc/Pages/default.aspx Chief Counsel’s Office]. | ||
<div id="Prior to offering mediation"></div> | |||
Prior to offering mediation or in the event mediation has been waived, the [[media:236.11.1.3_Impasse.docx|Impasse Letter]] can be provided to the property owner as another tool to communicate the necessity to settle the parcel. | |||
===236.7.2.20 Acquisition by Condemnation=== | ===236.7.2.20 Acquisition by Condemnation=== | ||
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The information needed by the district counsel’s office includes but is not limited to the following: | The information needed by the district counsel’s office includes but is not limited to the following: | ||
:*[ | :*[http://eprojects/Templates/RW/Chapter%207_Negotiation/Negotiator's%20Report%20Form%207.2.12.pdf Negotiator’s Report], (Form 7-2.13) and typed Negotiator’s Log detailing counteroffers and settlement offers, requests for design changes, etc. | ||
:*Latest title report | :*Latest title report | ||
:*Two copies of appraisal with [ | :*Two copies of appraisal with [https://epg.modot.org/forms/RW/Chapter%206_Appraisal%20and%20Appraisal%20Review/Appraisal%20Review%20and%20Approval%20of%20Just%20Compensation%20Form%206.4.3.docx Approval of Just Compensation], (Form 6.4.3) | ||
:*List of parties to be named as defendants and served notice | :*List of parties to be named as defendants and served notice | ||
:*Copy of pertinent documents (i.e. easements impacting the acquisition area, trust agreements, etc). | :*Copy of pertinent documents (i.e. easements impacting the acquisition area, trust agreements, etc). | ||
:*Copy of pertinent correspondence | :*Copy of pertinent correspondence | ||
:*Copies of property descriptions to be used in the Condemnation Petition. | :*Copies of property descriptions to be used in the Condemnation Petition. | ||
:*Copies of the [ | :*Copies of the [http://sharepoint/sites/de/epg/Lists/EPGResponse/Attachments/825/Surveyor%20Legal%20Description%20Cover%20Sheet%20(2).doc Legal Description, Exhibit A] for each property description submitted. | ||
'''D. Owner’s Expenses in Condemnation Are Not Reimbursable''' | '''D. Owner’s Expenses in Condemnation Are Not Reimbursable''' | ||
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'''C. Reimbursement of Real Estate Tax''' | '''C. Reimbursement of Real Estate Tax''' | ||
Information pertaining to the reimbursement of taxes is contained in the offer letter and the [http:// | Information pertaining to the reimbursement of taxes is contained in the offer letter and the [http://eprojects/Templates/RW/Chapter%207_Negotiation/Pathways%20for%20Progress%20brochure.pdf Pathways for Progress brochure]. During negotiations, the owner will be provided with the [https://epg.modot.org/forms/RW/Chapter%207_Negotiation/Prorata%20-%20Owners%20section.pdf Prorata Real Estate Tax Claim, Owner's Section] (Form 7-2.22C). | ||
Owners will be reimbursed for a pro rata portion of the state, county and city real estate taxes paid for the current taxable year on property purchased by the Commission. The pro rata portion of taxes will cover the full number of months remaining in the calendar year after payment is received by the owner or escrow agent for the property. Claims for reimbursement must be made within six months after the city or county tax delinquent date. Delinquent tax payments are not reimbursable. The owner is responsible for submission of paid tax receipts and | Owners will be reimbursed for a pro rata portion of the state, county and city real estate taxes paid for the current taxable year on property purchased by the Commission. The pro rata portion of taxes will cover the full number of months remaining in the calendar year after payment is received by the owner or escrow agent for the property. Claims for reimbursement must be made within six months after the city or county tax delinquent date. Delinquent tax payments are not reimbursable. The owner is responsible for submission of paid tax receipts and Form 7-2.22C to the district office for reimbursement. | ||
:'''1'''. Pro-ration of Real Estate Taxes | :'''1'''. Pro-ration of Real Estate Taxes | ||
:The following procedures will be followed for computing the pro-ration of real estate taxes, for all contiguous holdings under the same ownership normally considered in a before and after appraisal. The [ | :The following procedures will be followed for computing the pro-ration of real estate taxes, for all contiguous holdings under the same ownership normally considered in a before and after appraisal. The [https://epg.modot.org/forms/RW/Chapter%207_Negotiation/Prorata%20-%20Owners%20section.pdf Prorata Real Estate Tax Claim] (Form 7-2.22C) is self-explanatory. | ||
::'''a'''. Total Acquisition of Property | ::'''a'''. Total Acquisition of Property | ||
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::'''b'''. Partial Acquisition of Property: | ::'''b'''. Partial Acquisition of Property: | ||
::Divide the approved compensation, payable to fee holder for land, improvements, property rights and/or damage to remainder, by the value of the entirety as indicated on line E, (1) of right of way [ | ::Divide the approved compensation, payable to fee holder for land, improvements, property rights and/or damage to remainder, by the value of the entirety as indicated on line E, (1) of right of way [https://epg.modot.org/forms/RW/Chapter%206_Appraisal%20and%20Appraisal%20Review/Appraisal%20Review%20and%20Approval%20of%20Just%20Compensation%20Form%206.4.3.docx Form 6.4.3], then multiply computed percentage by the amount on the tax bill. Divide the resulting figure by 12 and multiply by the number of full months remaining in the taxable year after payment for the realty rights is delivered. | ||
::'''c'''. Impact of Waiver Valuation on Proration of Taxes | ::'''c'''. Impact of Waiver Valuation on Proration of Taxes | ||
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:Regional counsel may approve settlements less than $250,000 with the concurrence of the district right of way manager. | :Regional counsel may approve settlements less than $250,000 with the concurrence of the district right of way manager. | ||
:Settlements less than $250,000, in which the district right of way manager does not concur must be approved by the Assistant Chief Counsel - Litigation and the Right of Way | :Settlements less than $250,000, in which the district right of way manager does not concur must be approved by the Assistant Chief Counsel - Litigation and the Asst. to the State Design Engineer - Right of Way. | ||
:The Assistant Chief Counsel - Litigation and the Right of Way | :The Assistant Chief Counsel - Litigation and the Asst. to the State Design Engineer - Right of Way must approve settlements greater than $250,000. | ||
===236.7.3.2 Administrative Settlements Considerations=== | ===236.7.3.2 Administrative Settlements Considerations=== | ||
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===236.7.3.4 Approving and Processing Legal Settlements (Stipulated Settlements)=== | ===236.7.3.4 Approving and Processing Legal Settlements (Stipulated Settlements)=== | ||
As previously stated, stipulated settlements are those made after a commissioners' award has been filed with the circuit court. Settlements less than $250,000 will be submitted to the circuit court for approval after the concurrence of the district right of way manager. Settlements greater than $250,000, or which the district right of way manager does not concur, require the concurrence of the Right of Way | As previously stated, stipulated settlements are those made after a commissioners' award has been filed with the circuit court. Settlements less than $250,000 will be submitted to the circuit court for approval after the concurrence of the district right of way manager. Settlements greater than $250,000, or which the district right of way manager does not concur, require the concurrence of the Asst. to the State Design Engineer - Right of Way and the Assistant Chief Counsel - Litigation. | ||
To accomplish these settlements, regional counsel or assistant regional counsel prepares a [ | To accomplish these settlements, regional counsel or assistant regional counsel prepares a [http://eprojects/Templates/RW/Chapter%207_Negotiation/Pre-trial%20report%20Exh%205E.1.docx Pre-Trial Report]. The comments of the district right of way manager and the Asst. to the State Design Engineer - Right of Way should be considered by the Assistant Chief Counsel - Litigation, prior to final approval of the settlement. | ||
==236.7.4 Escrow Agreements, Deeds of Release and Purchase Agreement== | ==236.7.4 Escrow Agreements, Deeds of Release and Purchase Agreement== | ||
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This information establishes MoDOT’s procedures for using escrow agreements, subordination of mortgage liens, deeds of release and purchase agreements in the acquisition of land and easements. | This information establishes MoDOT’s procedures for using escrow agreements, subordination of mortgage liens, deeds of release and purchase agreements in the acquisition of land and easements. | ||
The negotiator should know what documents will be required for closing depending on ownership and value of the property. The checklist of items (provided in the links following), include those required documents, depends on whether [http://eprojects/Templates/RW/Chapter%207_Negotiation/Negotiator%20Packet%20Table%20of%20Contents%20-%20Closing%20with%20MoDOT.doc MoDOT] or a [http://eprojects/Templates/RW/Chapter%207_Negotiation/Negotiator%20Packet%20Table%20of%20Contents%20-%20Closing%20with%20Title%20Company.doc title company] will be conducting the closing. | |||
===236.7.4.2 Escrow Agreements=== | ===236.7.4.2 Escrow Agreements=== | ||
An | An Escrow Agreement (fee owner) (Form 7-4.2A (CCO RW8)) or a Tenant Escrow Agreement (Form 7-4.2B (CCO RW10)), is used when an escrow agent is used (see [[236.4 Description Writing and Titles#236.4.4.6 Escrow Services|EPG 236.4.4.6]]). (Forms RW8 and RW10 are accessible in [http://sp/sites/eagreements/SitePages/Home.aspx eAgreements].) | ||
The use of an Escrow Agreement is not required when obtaining property or property rights from another government agency. | The use of an Escrow Agreement is not required when obtaining property or property rights from another government agency. | ||
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:'''1'''. When Tenant Escrow Agreement is used | :'''1'''. When Tenant Escrow Agreement is used | ||
:The | :The Tenant Escrow Agreement (Form 7-4.2B, RW10) (Form RW10 is accessible in [http://sp/sites/eagreements/SitePages/Home.aspx eAgreements]) is used when necessary to ensure removal or possession of tenant-owned improvements or equipment retained by the tenant owner. | ||
:The Tenant Escrow Agreement may be used to acquire tenant interests prior to conveyance or condemnation of fee holder interests, only if a | :The Tenant Escrow Agreement may be used to acquire tenant interests prior to conveyance or condemnation of fee holder interests, only if a Release of Structures and Leasehold (Form 7-2.7D (CCO RW15)) (Form RW15 is accessible in [http://sp/sites/eagreements/SitePages/Home.aspx eAgreements]), is executed by the fee owner and attached to the Tenant Escrow Agreement. | ||
:'''2'''. Phrases for Release of Structures and Leasehold if Tenant Escrow Agreement is not used | :'''2'''. Phrases for Release of Structures and Leasehold if Tenant Escrow Agreement is not used | ||
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'''Requirements for the Retention of Improvements''' | '''Requirements for the Retention of Improvements''' | ||
Requirements for the [ | Requirements for the [https://epg.modot.org/forms/RW/Chapter%207_Negotiation/Requirements%20for%20the%20Retention%20Form%207.4.2C.pdf Retention of Improvements] (Form 7-4.2C,) must be incorporated with any Escrow Agreement or Agreement for Purchase of Real Estate. The form sets out the requirements of an owner or tenant that elects to retain improvements or equipment for removal from the acquired land. | ||
===236.7.4.3 Deed of Release and Partial Deed of Release=== | ===236.7.4.3 Deed of Release and Partial Deed of Release=== | ||
Obtaining Deeds of Release and | Obtaining Deeds of Release and Partial Deeds of Release] (Form 7-4.3, RW25) (Form RW25 is accessible in [http://sp/sites/eagreements/SitePages/Home.aspx eAgreements]) is the responsibility of the escrow agent. When obtaining a release from a corporation, a corporation release form is normally used. For individuals or partners, a non-corporation release form is to be used. Most title companies, banks, and other lending institutions carry appropriate forms as part of their routine business. The escrow agent is to either prepare the release for execution by the lien holder or provide the lien holder with the property description for inclusion in the release. | ||
===236.7.4.4 Agreement for Purchase of Real Estate=== | ===236.7.4.4 Agreement for Purchase of Real Estate=== | ||
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'''A. When Agreement for Purchase of Real Estate is used''' | '''A. When Agreement for Purchase of Real Estate is used''' | ||
The | The Agreement for Purchase of Real Estate, Form 7-4.4 (CCO RW7) (Form RW7 is accessible in [http://sp/sites/eagreements/SitePages/Home.aspx eAgreements]) is used when purchasing property or property rights and an escrow agreement is not being used as discussed in [[236.4 Description Writing and Titles#236.4.4.6 Escrow Services|EPG 236.4.4.6 Escrow Services]]. As required by [https://revisor.mo.gov/main/OneSection.aspx?section=141.250 RSMo 141.250], the proceeds derived from the sale of any lands with a tax lien, shown by records of land trust, the land bank agency, or the city or county collector, shall be distributed to the lien holders first before any proceeds are paid to the property owner. The negotiator is required to determine whether any tax liens exist and ensure the lien holder is paid before the property owner is paid. | ||
The use of this agreement is not required when obtaining property or property rights from another governmental agency. | The use of this agreement is not required when obtaining property or property rights from another governmental agency. | ||
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===236.7.4.5 Subordination of Mortgage Liens=== | ===236.7.4.5 Subordination of Mortgage Liens=== | ||
The Partial Deed of Release is the most commonly used, and preferred, document when obtaining a partial acquisition from a mortgaged property | The Partial Deed of Release, RW25, is the most commonly used, and preferred, document when obtaining a partial acquisition from a mortgaged property. | ||
Please note that | Please note that this document serves as a partial release of a mortgage but merely subordinate the lender’s interest in the acquired property to the rights of the Commission. This document is usually signed prior to payrolling the acquisition and then held in escrow along with the conveyance documents until payment is made to the escrow agent. | ||
==236.7.5 Railroad, State and Federal Acquisitions== | ==236.7.5 Railroad, State and Federal Acquisitions== | ||
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'''A. General''' | '''A. General''' | ||
The acquisition of land owned by railroad companies is a | The acquisition of land owned by railroad companies is a team responsibility of the COROW, district right of way manager, and the Multimodal Operations Division (for additional information see [[643.4 Railroads|EPG 643.4 Railroads]]). | ||
Plans approved for acquisition purposes will indicate a separate parcel number for the operating railroad right of way and to each parcel of non-operating railroad property owned by a railroad. | Plans approved for acquisition purposes will indicate a separate parcel number for the operating railroad right of way and to each parcel of non-operating railroad property owned by a railroad. | ||
District right of way is responsible for the acquisition | District right of way is responsible for compiling the acquisition documents and COROW is responsible for negotiating all railroad right of way. | ||
The Railroad Projects Manager is responsible for | The Railroad Projects Manager is responsible for ensuring all communication regarding the acquisition of railroad right of way includes the COROW staff. The RRPM will ensure the Construction and Maintenance Agreement is simultaneously obtained from the affected railroad entity during negotiations. | ||
'''B. Acquisition Procedures - | '''B. Acquisition Procedures - Railroad Land''' | ||
The Multimodal Operations Division will | The Multimodal Operations Division will notify COROW of railroad projects. The COROW will: | ||
:*Obtain title information for each parcel. | :*Obtain title information for each parcel. The conveyance of the property to the railroad is sufficient unless the land involved is a recent purchase. | ||
:*Appraise each parcel in accordance with current appraisal procedures. | :*Appraise each parcel in accordance with current appraisal procedures. | ||
:*Prepare a deed with metes and bounds description. | :*Prepare a deed with metes and bounds description. A Warranty Deed (Form 4-7.1A (CCO RW3)) or Quit Claim Deed (Form 4-7.2 (CCO RW2)) is desirable and have been accepted by railroads in some situations, or use an Easement for Highway Purposes, (Form 4-7.5 (CCO RW23)). (Forms RW2, RW3 and RW23 are accessible in eAgreements.) | ||
'''C. Controlled Access from Railroads and Abutting Owners''' | |||
'''C | |||
When a proposed controlled access boundary line intersects or coincides with a railroad right of way line, all easements should include a controlled access clause for access rights from the railroad and adjoining owners of underlying rights. | When a proposed controlled access boundary line intersects or coincides with a railroad right of way line, all easements should include a controlled access clause for access rights from the railroad and adjoining owners of underlying rights. | ||
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Also, when the proposed controlled access boundary line and the railroad right of way line coincide, it is necessary to acquire abutters' rights of direct access from owners of land and property rights adjoining the opposite side of the railroad right of way. | Also, when the proposed controlled access boundary line and the railroad right of way line coincide, it is necessary to acquire abutters' rights of direct access from owners of land and property rights adjoining the opposite side of the railroad right of way. | ||
''' | '''D. Acquiring Underlying Fee in Railroad Land and Right of Way''' | ||
It is advisable to acquire the underlying fee rights of current adjoining successors in title, when acquiring | It is advisable to acquire the underlying fee rights of current adjoining successors in title, when acquiring railroad land. | ||
When a proposed highway boundary line crosses or intersects the right of way of an operating railroad, it may be necessary to acquire the underlying fee within the limits of the railroad right of way from adjacent owners who have reversionary rights. | When a proposed highway boundary line crosses or intersects the right of way of an operating railroad, it may be necessary to acquire the underlying fee within the limits of the railroad right of way from adjacent owners who have reversionary rights. It is the discretion of the district right of way manager and COROW as to whether or not the underlying fee should be acquired. The necessity increases, as the likelihood of future railroad abandonment increases. | ||
'''E. Condemnation of Railroads''' | |||
The Railroad Projects Manager is to be notified of the anticipated date of condemnation when the COROW is acquiring railroad property. | |||
District right of way will be responsible for including in condemnation both operating and non-operating railroad property that are not acquired by negotiation. Prior to preparation of a condemnation petition, determine the status of negotiations and a recommendation to include or exclude railroad property in condemnation. Railroad property is not to be included in the condemnation petition unless the Multimodal Operations Division has received proper authorization from the Department of Economic Development, Division of Motor Carrier, and Railroad Safety. | |||
District right of way will be responsible for including in condemnation both operating and non-operating railroad property that are not acquired by negotiation. | |||
===236.7.5.3 Acquisition from Federal Agencies=== | ===236.7.5.3 Acquisition from Federal Agencies=== | ||
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===236.7.5.4 Acquisition from State of Missouri Agencies=== | ===236.7.5.4 Acquisition from State of Missouri Agencies=== | ||
'''A. Acquisition from Conservation Commission | '''A. Acquisition from Conservation Commission and the University of Missouri''' | ||
Other than the MHTC, the Conservation Commission and the University of Missouri are the only Missouri state agencies that have authority to convey real property. When the MHTC acquires land or property rights from one of these two agencies, district right of way shall negotiate directly with the agency. | |||
The curators of the University of Missouri are vested with the power to convey property owned by the University in § 172.020, RSMo. This section reads, in part, “The Curators of the University of Missouri…shall have perpetual…power…to take, purchase and to sell, convey and otherwise dispose of lands and chattels…”. This is consistent with § 37.005.9, RSMo which specifically excepts property owned by the university from other state property which vests in the governor and requires authorization from the general assembly before it can be conveyed. | |||
It is not as clear whether the Department of Conversation/Conservation Commission has the power to convey the property it owns. However, Art. IV, § 40(a) of the Missouri Constitution gives the Conservation Commission the control, power and management over all property owned, acquired or used for conservation purposes. While this constitutional provision does not specifically state that the Conservation Commission has the power to convey property, a reasonable interpretation of this section, read in conjunction with § 37.005.9, RSMo., is that the Conservation Commission has the power to convey property. | |||
'''B. Acquisition from All Other State Agencies''' | '''B. Acquisition from All Other State Agencies''' | ||
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:When only easement rights are to be acquired, the statute permits the Governor to convey an easement without legislative action, after the document is approved as to form by the Attorney General's Office. | :When only easement rights are to be acquired, the statute permits the Governor to convey an easement without legislative action, after the document is approved as to form by the Attorney General's Office. | ||
:The | :The document CCO RW24 may be used for these acquisitions, with a suggested heading change to EASEMENT(S) ON STATE PROPERTY FOR HIGHWAY PURPOSES. (Form RW24 is accessible in [http://sp/sites/eagreements/SitePages/Home.aspx eAgreements].) This heading change does not require approval by Chief Counsel Office. | ||
:'''3'''. Acquisition Procedure | :'''3'''. Acquisition Procedure | ||
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::*review and approve Just Compensation | ::*review and approve Just Compensation | ||
::*prepare offer letter | ::*prepare offer letter | ||
::*prepare | ::*prepare Quit Claim Deed | ||
:Forward appraisal, offer letter, Quitclaim Deed, and plan sheets to the Right of Way Section. The Right of Way Section will: | :Forward appraisal, offer letter, Quitclaim Deed, and plan sheets to the Right of Way Section. The Right of Way Section will: | ||
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Once the location for a new site is chosen or the decision is made to expand a facility, the General Services Division will request district right of way to determine the market value of the property. | Once the location for a new site is chosen or the decision is made to expand a facility, the General Services Division will request district right of way to determine the market value of the property. | ||
All property to be acquired for capital improvement purposes shall be appraised in accordance with [[236.6 Appraisal and Appraisal Review#236.6.3.8 Maintenance Lot and Capital Improvement Valuation|EPG 236.6 Appraisal and Appraisal Review]]. In those instances where only a portion of the total property is to be acquired, | All property to be acquired for capital improvement purposes shall be appraised in accordance with [[236.6 Appraisal and Appraisal Review#236.6.3.8 Maintenance Lot and Capital Improvement Valuation|EPG 236.6 Appraisal and Appraisal Review]]. In those instances where only a portion of the total property is to be acquired, appraisers shall determine if the acquisition will damage the remaining property. If in their opinion the remaining property is damaged, the appraisers shall prepare a before and after appraisal of the property setting forth such damages. If in their opinion there is no damage to the remainder, appraisers are to make a statement to that effect in the appraisal report and appraise the part to be acquired as a total tract. | ||
Upon completion of the appraisal, it is to be reviewed in the district in accordance with [[236.3 Administration|EPG 236.3]]. A copy of the approved appraisal shall be forwarded by the district to the General Services Division for funding allocations. | Upon completion of the appraisal, it is to be reviewed in the district in accordance with [[236.3 Administration|EPG 236.3]]. A copy of the approved appraisal shall be forwarded by the district to the General Services Division for funding allocations. | ||
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===236.7.6.3 Acquisition Procedure=== | ===236.7.6.3 Acquisition Procedure=== | ||
Upon receipt of concurrence, the General Services Division will advise district right of way to initiate negotiations for acquisition of the property. A [ | Upon receipt of concurrence, the General Services Division will advise district right of way to initiate negotiations for acquisition of the property. A [http://eprojects/Templates/RW/Chapter%207_Negotiation/Offer%20Letter%20Form%20-%20Capital%20Improvements%207.6.3.docx letter of offer on capital improvement facilities] (Form 7.6.3), is to be used in making offers to property owners. District right of way should follow acquisition procedures outlined in the areas of [[236.3 Administration#236.3.5 Right of Way Expenditures|payrolling]], [[236.4 Description Writing and Titles#236.4.4.8 Obtaining Title Insurance and Title Commitments|abstract or title insurance]], and the use of [[236.4 Description Writing and Titles#236.4.4.6 Escrow Services|Escrow Agents]]. | ||
All capital improvement sites and additions shall be acquired in fee simple title. The deed for conveyance shall be based on an accurate survey of the property. A professional land surveyor shall complete the survey. | All capital improvement sites and additions shall be acquired in fee simple title. The deed for conveyance shall be based on an accurate survey of the property. A professional land surveyor shall complete the survey. | ||
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The cost of appraisals, survey expenses, title work and other miscellaneous right of way items as well as the cost of the site itself shall be charged to the appropriate project number established by the General Services Division. | The cost of appraisals, survey expenses, title work and other miscellaneous right of way items as well as the cost of the site itself shall be charged to the appropriate project number established by the General Services Division. | ||
==236.7.7 1099 | ==236.7.7 1099 Reporting of Acquisitions== | ||
===236.7.7.1 Purpose=== | ===236.7.7.1 Purpose=== | ||
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This information establishes MoDOT’s guidelines and procedures for reporting the acquisition of real estate or real property rights to the Internal Revenue Service (IRS). | This information establishes MoDOT’s guidelines and procedures for reporting the acquisition of real estate or real property rights to the Internal Revenue Service (IRS). | ||
===236.7.7.2 1099 | ===236.7.7.2 1099 Reporting Procedure=== | ||
'''A. Transactions Reported''' | '''A. Transactions to be Reported''' | ||
The Commission is responsible for reporting | The Commission is responsible for reporting the following real estate acquisitions to the IRS: | ||
:*Real | :* Real property and or permanent right in excess of $600 will be reported on a 1099-S. | ||
:* Temporary easements if the easement is to last 30 years or more and are paid over $600 will be reported on a 1099 MISC and handled by OA. Damages to remainders for real property and/or permanent rights will be reported on a 1099-S. | |||
:*Temporary easements if the easement is to last 30 years or | :* Damages related to the temporary easement will be reported on a 1099-MISC and will be handled by OA. | ||
:*Damages | :* Damages included with a temporary easement that consist of money provided to a property owner that will not be expended on the property over $600 (for example, removing an entrance/driveway) will be handled by OA and reported on a 1099-MISC. | ||
:* Administrative settlements included with a temporary easement will be handled by OA and reported on a 1099-MISC. | |||
'''B. Transactions Not Reported''' | '''B. Transactions Not Reported''' | ||
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The following are exceptions to the requirements for reporting acquisitions to the IRS: | The following are exceptions to the requirements for reporting acquisitions to the IRS: | ||
:*Purchases from corporations and governmental agencies. | :* Purchases from corporations and governmental agencies. | ||
:* | :* If the payment is being made to an escrow agent, the agent handles the 1099 reporting. | ||
:* | :* Cost to cure (damages) included with a temporary easement that consists of money being provided to a property owner to expend on property, for example, trees and fencing. | ||
'''C. Determining Year of Reporting''' | '''C. Determining Year of Reporting''' | ||
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'''D. Reporting More Than One Owner''' | '''D. Reporting More Than One Owner''' | ||
Transactions should be | Transactions should be entered in RWPA shortly after they are closed or condemned. In the case of condemned property it will be necessary to base the report on the award. When more than one property owner (other than husband and wife or partnerships) is involved in receiving proceeds from the acquisition, IRS regulations require that an allocation of the gross proceeds be requested by MoDOT. The request must be made at or before the time of closing or at the time the Commissioners’ award is paid into court. This request should be made by certified mail with a copy to each taxpayer. | ||
If the distribution cannot be determined or if an award is not drawn down from court, it will be necessary to report the entire amount to the IRS for each individual taxpayer. Those individuals whose property is acquired by negotiation yet still refuse to provide a distribution of funds should also receive a request by certified mail. The request should advise taxpayers that if an allocation of funds is not provided the entire amount will be reported as if paid to each taxpayer. | If the distribution cannot be determined or if an award is not drawn down from court, it will be necessary to report the entire amount to the IRS for each individual taxpayer. Those individuals whose property is acquired by negotiation yet still refuse to provide a distribution of funds should also receive a request by certified mail. The request should advise taxpayers that if an allocation of funds is not provided the entire amount will be reported as if paid to each taxpayer. | ||
'''E – RWPA System Requirements for 1099s''' | |||
All data must be entered on the following screens for a 1099 to be processed: | |||
Location Description screen: Section, Township and Range. | |||
1099 screen: Fee Holder/Tenants info: SSN/Tax ID; | |||
::1099 data – Type (interest or “s” sale), Date Closed, and Gross Proceeds. | |||
===236.7.7.3 Taxpayer Identification Numbers=== | ===236.7.7.3 Taxpayer Identification Numbers=== | ||
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Under IRS regulations, any person whose TIN is requested must furnish such TIN and certify that the TIN is correct. The solicitation shall be made by providing a written statement to the taxpayer that they are required by law to furnish a correct TIN, and that they may be subject to civil or criminal penalties for failing to furnish a correct TIN. | Under IRS regulations, any person whose TIN is requested must furnish such TIN and certify that the TIN is correct. The solicitation shall be made by providing a written statement to the taxpayer that they are required by law to furnish a correct TIN, and that they may be subject to civil or criminal penalties for failing to furnish a correct TIN. | ||
The procedures described in [[236.7 Negotiation#236.7.2 Guidelines and Procedures|EPG 236.7.2]] shall be followed in soliciting TINs from taxpayers during negotiations. The paragraph in the offer letter pertaining to TINs will satisfy the above requirement. | The procedures described in [[236.7 Negotiation#236.7.2 Guidelines and Procedures|EPG 236.7.2]] shall be followed in soliciting TINs from taxpayers during negotiations. The paragraph in the offer letter pertaining to TINs will satisfy the above requirement. A Vendor Input Form or W9, whichever is applicable, can be used with the request. | ||
When dealing with a representative of the owner(s), it is permissible to request that the representative obtain the TIN from the taxpayer(s); however, if they fail to supply it, a request must be sent to the taxpayer(s) by certified mail. | When dealing with a representative of the owner(s), it is permissible to request that the representative obtain the TIN from the taxpayer(s); however, if they fail to supply it, a request must be sent to the taxpayer(s) by certified mail. | ||
A completed Form 7-7.3 will be retained in the parcel file and provided to the escrow agent. A completed Vendor Input Form | A completed Form 7-7.3 will be retained in the parcel file and provided to the escrow agent. A completed Vendor Input Form is to be submitted to the Office of Administration. | ||
A. Instructions for Preparing Request for Taxpayer Identification Number and Request for Allocation of Gross Proceeds | '''A. Instructions for Preparing Request for Taxpayer Identification Number and Request for Allocation of Gross Proceeds''' | ||
The [ | The [https://epg.modot.org/forms/RW/Chapter%207_Negotiation/Request%20Allocation%20Gross%20Proceeds%20Form%207.7.3.pdf Request for Allocation of Gross Proceeds] (Form 7-7.3) and [https://epg.modot.org/forms/RW/Chapter%207_Negotiation/Request%20for%20TIN%20and%20Allocation%20of%20Gross%20Proceeds%20Form%207.7.3.A.docx Request for Taxpayer Identification Number and Allocation of Gross Proceeds - Sample Letter] (Form 7-7.3A), has been prepared as a style sheet. Five fields (County, Route, Job, Parcel and Total Amount to be Allocated) are to be completed by district right of way before giving the form to the property owner. | ||
A [ | A [https://epg.modot.org/forms/RW/Chapter%207_Negotiation/Request%20for%20TIN%20and%20Allocation%20of%20Gross%20Proceeds%20Form%207.7.3.A.docx sample letter] (Form 7-7.3A) to accompany the request form is available. | ||
===236.7.7.4 Methods for Reporting to the IRS=== | ===236.7.7.4 Methods for Reporting to the IRS=== | ||
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Reporting of real estate transactions to the IRS will be done by one of the following four methods: | Reporting of real estate transactions to the IRS will be done by one of the following four methods: | ||
:*If the property is purchased and the transaction is closed by an escrow agent, the escrow agent is to handle the reporting to the IRS. The agreement for title and escrow services as described in [[236.4 Description Writing and Titles#236.4.4.6 Escrow Services|EPG 236.4.4.6 Escrow Services]] provides for this requirement. If a bank or other source is used as an escrow agent, the letter of understanding with the escrow agent should spell out this duty along with the other duties. | :* If the property is purchased and the transaction is closed by an escrow agent, the escrow agent is to handle the reporting to the IRS. The agreement for title and escrow services as described in [[236.4 Description Writing and Titles#236.4.4.6 Escrow Services|EPG 236.4.4.6 Escrow Services]] provides for this requirement. If a bank or other source is used as an escrow agent, the letter of understanding with the escrow agent should spell out this duty along with the other duties. | ||
:*If the property is purchased and the transaction is not closed by an escrow agent, district right of way is responsible for creating a | :* If the property is purchased and the transaction is not closed by an escrow agent, district right of way is responsible for creating a 1099-S in the RWPA application. The “Property Transfer Settlement” field shall be filled in with “Yes” if part of the consideration for a reportable acquisition transaction consisted of realty. The most current address shall be verified and used on the form. | ||
:*If the property is condemned, it should be determined if the County Clerk is reporting the transaction to the IRS. If they are making the report, MoDOT will not duplicate it. If the County Clerk is not reporting the transactions, district right of way is responsible for creating a | :* If the property is condemned, it should be determined if the County Clerk is reporting the transaction to the IRS. If they are making the report, MoDOT will not duplicate it. If the County Clerk is not reporting the transactions, district right of way is responsible for creating a 1099-S and/or 1099-I in the RWPA application. | ||
:* | :* If the property purchased is a temporary easement, OA will handle reporting the 1099-MISC. | ||
===236.7.7.5 Corrected 1099-S's=== | |||
If a trial or legal settlement occurs during the same tax year that the Commissioners’ Award was reported, district right of way shall correct the 1099-S in the Right of Way Parcel Acquisition application to show the new amount. The 1099-S shall be corrected if the final amount is either more or less than the amount previously reported. | |||
If a trial or legal settlement occurs during the same tax year that the Commissioners’ Award was reported, district right of way shall correct the | |||
===236.7.7.6 Reporting on Condemned Acquisitions=== | ===236.7.7.6 Reporting on Condemned Acquisitions=== | ||
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'''A. Reporting Jury Verdicts or Settlements in Subsequent Tax Years''' | '''A. Reporting Jury Verdicts or Settlements in Subsequent Tax Years''' | ||
If a jury verdict or settlement occurs in a subsequent tax year and the amount of the verdict or settlement is greater than the award, a normal | If a jury verdict or settlement occurs in a subsequent tax year and the amount of the verdict or settlement is greater than the award, a normal 1099-S for the difference between the verdict or settlement (not including interest) and the previously reported amount shall be created in the Right of Way Parcel Acquisition application by district right of way. | ||
If a jury verdict or settlement in a subsequent year is for an amount less than the award, no reporting is necessary. | If a jury verdict or settlement in a subsequent year is for an amount less than the award, no reporting is necessary. | ||
If the jury verdict or settlement is on a parcel that was condemned in a year in which the department was not required to report transactions, a | If the jury verdict or settlement is on a parcel that was condemned in a year in which the department was not required to report transactions, a 1099-S shall be submitted for the difference in the verdict or settlement (not including interest) and the original award. Do not include the original award in this submission, even though MoDOT never reported the original award. | ||
'''B. Reporting Payment of Interest''' | '''B. Reporting Payment of Interest''' | ||
When a jury verdict or a legal settlement results in $600 or more of interest being due the property owner, the payment of interest is to be reported to the Internal Revenue Service. In these cases, district right of way shall create a | When a jury verdict or a legal settlement results in $600 or more of interest being due the property owner, the payment of interest is to be reported to the Internal Revenue Service. In these cases, district right of way shall create a 1099-INT. | ||
When more than one property owner (other than husband and wife or partnerships) is involved in receiving proceeds from the acquisition, the reporting of interest is to be broken down by the same ratio as the allocation of the gross proceeds among the taxpayers. | When more than one property owner (other than husband and wife or partnerships) is involved in receiving proceeds from the acquisition, the reporting of interest is to be broken down by the same ratio as the allocation of the gross proceeds among the taxpayers. | ||
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===236.7.8.1 Application for Employment as Contract Negotiator=== | ===236.7.8.1 Application for Employment as Contract Negotiator=== | ||
All contracts for negotiation services shall comply with statutory, MODOT and E-Verify requirements when applicable. Please refer to [[236. | All contracts for negotiation services shall comply with statutory, Missouri Department of Transportation (MODOT) and E-Verify requirements when applicable. Please refer to [[236.3_Administration#236.3.11_Contracting_with_MoDOT_and_E-Verify_Requirements|EPG 236.3.11 Contracting with MoDOT and E-Verify Requirements]] for more information. | ||
Right of Way negotiators employed under agreement by the MHTC must enjoy a good professional reputation and be able to provide evidence of significant experience in negotiating for [[236. | Right of Way negotiators employed under agreement by the Missouri Highways and Transportation Commission (MHTC) must enjoy a good professional reputation and be able to provide evidence of significant experience in Federal-Aid projects and negotiating for [[236.10_Right_Of_Way_Condemnation#236.10.7_Eminent_Domain_Guidelines|eminent domain]] acquisitions. Additional experience obtained through classes relating to the uniform act and negotiations is recommended as outlined below. | ||
All fee negotiators who desire to work for MHTC on a contract basis | All fee negotiators who desire to work for MHTC on a contract basis are required to complete the MoDOT ROW Negotiator training and submit an [https://epg.modot.org/forms/RW/Chapter%207_Negotiation/Application%20Employment%20Contract%20Negotiator%20Form%207.8.1.pdf Application for Employment as a Contract Negotiator] (Form 7.8.1), to a district right of way office. When the application is received at the district office, a member of the right of way department shall conduct an investigation to verify the qualifications of the applicant. This investigation shall be to the extent necessary to determine the abilities of the applicant and the applicant's general reputation within the profession. All clients shown on the application may be contacted by telephone. All applicants must have recommendations by at least two clients. | ||
After the investigation is completed and district right of way is satisfied with the applicant's qualifications, the district shall transmit to | After the investigation is completed and district right of way department is satisfied with the applicant's qualifications, the district shall transmit to Central Office Right of Way the recommendation together with one copy of the application and any other necessary information for the approval process. Central Office Right of Way will review the recommendation and supporting information to verify the applicant's qualifications and will advise the district office, in writing, of the approval or disapproval of the applicant. | ||
'''Duration of Approval of Fee Negotiators on the Roster of Approved Negotiators''' | '''Duration of Approval of Fee Negotiators on the Roster of Approved Negotiators''' | ||
Duration of approval on the Roster of Approved Fee Negotiators is | Duration of approval on the Roster of Approved Fee Negotiators is 5 years. The negotiator will be required to complete the MoDOT ROW Negotiator training and submit their renewal application by July 1<sup>st</sup>, of the expiration year listed on the roster. If a renewal application is not received by July 1<sup>st</sup>, the appraiser will be removed from the roster. If the negotiator fails to comply with the terms of the Negotiator Contract Agreement, or the progress or quality of the work is unsatisfactory, MoDOT reserves the right to remove the negotiator from the approved roster. A renewal application will be required if the applicant desires to remain on the list and capture updated information such as address, phone numbers, email addresses and areas of the state the applicant is interested in performing work. Renewal dates are contained in the [https://epg.modot.org/forms/RW/Chapter%207_Negotiation/Roster%20of%20Approved%20Contract%20Negotiators.pdf Roster of Approved MoDOT Contract Negotiators]. | ||
===236.7.8.2 Roster of Approved Contract Negotiators=== | ===236.7.8.2 Roster of Approved MoDOT Contract Negotiators=== | ||
The Right of Way Section will maintain a Roster of Approved Contract Negotiators | The Right of Way Section will maintain a Roster of Approved MoDOT Contract Negotiators, listing all approved contract negotiators. The roster indicates the districts in which the individual is available to work, however, approved negotiators may work in any district of the state. | ||
===236.7.8.3 Preliminary Contract Negotiation Fee Estimate=== | ===236.7.8.3 Preliminary Contract Negotiation Fee Estimate=== | ||
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The availability of qualified contract negotiators varies from one location to another and/or from one time period to another, depending upon current economic conditions. Departmental guidelines provides for both the solicitation of competitive proposals and for non-competitive contracting. The availability of qualified contract negotiators and project time constraints may determine the bid process that will be followed. | The availability of qualified contract negotiators varies from one location to another and/or from one time period to another, depending upon current economic conditions. Departmental guidelines provides for both the solicitation of competitive proposals and for non-competitive contracting. The availability of qualified contract negotiators and project time constraints may determine the bid process that will be followed. | ||
Every effort shall be made to select the most qualified negotiators available for the particular assignments involved. Consideration should be given to anticipated negotiation problems, the talents and skills of the prospective negotiators, past performance, and present commitments. | Every effort shall be made to select the most qualified negotiators available for the particular assignments involved. Consideration should be given to anticipated negotiation problems, the talents and skills of the prospective negotiators, past performance, and present commitments. The negotiator must have experience working on federal-aid projects and provide a list of those projects within the application. The district shall contact by letter, telephone, or in person each of the selected negotiators to determine their interest in submitting proposals for the required work. | ||
Each prospective negotiator must familiarize themselves with all aspects of the proposed negotiations assignment. A member of the district right of way staff shall be available to accompany prospective negotiators during a field review of each parcel if requested, in order to acquaint them with project plans, rights being acquired, and any unique problems that may be encountered. | Each prospective negotiator must familiarize themselves with all aspects of the proposed negotiations assignment. A member of the district right of way staff shall be available to accompany prospective negotiators during a field review of each parcel if requested, in order to acquaint them with project plans, rights being acquired, and any unique problems that may be encountered. | ||
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A proposal packet shall be prepared for each selected negotiator, whether distributing competitive proposals or non-competitive proposals. Each proposal packet should contain the following: | A proposal packet shall be prepared for each selected negotiator, whether distributing competitive proposals or non-competitive proposals. Each proposal packet should contain the following: | ||
:* | :* Proposal for Contract Negotiations (Form 7-8.4 (CCO RW33) (Form RW33 is accessible in [http://sp/sites/eagreements/SitePages/Home.aspx eAgreements]), with parcel number, owner, and realty appraisal format completed on the price page). | ||
:* | :* Blank copy of Negotiator Services Agreement (Form 7-8.5 (CCO RW34)). (Form RW34 is accessible in [http://sp/sites/eagreements/SitePages/Home.aspx eAgreements]) | ||
:*Right of Way Plans. | :*Right of Way Plans. | ||
:*Copies of appropriate negotiations forms and form letters. | :*Copies of appropriate negotiations forms and form letters. | ||
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When staff workload or project completion considerations warrant, negotiations agreements may be awarded without competitive proposals, the district may proceed as follows: | When staff workload or project completion considerations warrant, negotiations agreements may be awarded without competitive proposals, the district may proceed as follows: | ||
District shall select negotiators from the current Roster of Approved Contract Negotiators | District shall select negotiators from the current Roster of Approved MoDOT Contract Negotiators. Every effort shall be made to select the most qualified negotiator available for the particular job. Consideration should be given to anticipated negotiation problems, negotiator’s experience, negotiator's past performance, pending assignments, etc. District personnel determine the selected negotiator’s availability to complete the work within a specified time. | ||
After the negotiator has been made aware of all facts regarding the prospective negotiations assignment, the district shall request a | After the negotiator has been made aware of all facts regarding the prospective negotiations assignment, the district shall request a Proposal for Contract Negotiations (Form 7-8.4, RW33) (Form RW33 is accessible in [http://sp/sites/eagreements/SitePages/Home.aspx eAgreements]), setting forth a fee for each parcel. Since competitive proposals are not involved, the Competitive Proposal paragraph may be deleted or marked "not applicable." The proposal must be dated, signed, and submitted to the district office by the prospective negotiator. | ||
Should it be determined that the proposed fees appear excessive, the district right of way manager or a designee shall negotiate with the negotiator in an effort to achieve acceptable fees. In the event negotiations fail to produce acceptable fees, the district has the option to negotiate with another contractor or initiate the competitive bid process. Once acceptable fees are agreed upon, the district shall secure a Negotiator Services Agreement (CCO RW34). | Should it be determined that the proposed fees appear excessive, the district right of way manager or a designee shall negotiate with the negotiator in an effort to achieve acceptable fees. In the event negotiations fail to produce acceptable fees, the district has the option to negotiate with another contractor or initiate the competitive bid process. Once acceptable fees are agreed upon, the district shall secure a Negotiator Services Agreement (CCO RW34). | ||
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===236.7.8.5 Negotiator Services Agreement=== | ===236.7.8.5 Negotiator Services Agreement=== | ||
All Fee Negotiators performing negotiation work for the Missouri Highways and Transportation Commission shall do so by a fully completed and executed | All Fee Negotiators performing negotiation work for the Missouri Highways and Transportation Commission shall do so by a fully completed and executed Negotiator Services Agreement (Form 7-8.5 (CCO RW34)) (Form RW34 is accessible in [http://sp/sites/eagreements/SitePages/Home.aspx eAgreements]). Negotiator Services Agreements with individuals or companies shall designate the individual(s) who shall perform the negotiation services. An officer shall execute all agreements with companies. Each agreement shall include a copy of the negotiator’s proposal (Form 7-8.4, RW33). (Form RW33 is accessible in [http://sp/sites/eagreements/SitePages/Home.aspx eAgreements].) | ||
Three copies of the Negotiator Services Agreement shall be executed by appropriate MoDOT staff in accordance with the Commission’s Execution of Documents Policy. | Three copies of the Negotiator Services Agreement shall be executed by appropriate MoDOT staff in accordance with the Commission’s Execution of Documents Policy. | ||
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Subsequent to the execution of the initial agreement, it sometimes becomes necessary, due to plan changes or other considerations, to request additional negotiations services. If such services are required, they are to be secured by processing a supplemental negotiations agreement. | Subsequent to the execution of the initial agreement, it sometimes becomes necessary, due to plan changes or other considerations, to request additional negotiations services. If such services are required, they are to be secured by processing a supplemental negotiations agreement. | ||
Supplemental Negotiator Services Agreement (Form 7-8.6, (CCO RW35)) (Form RW35 is accessible in [http://sp/sites/eagreements/SitePages/Home.aspx eAgreements]) is designed to minimize administrative efforts when it becomes necessary to add parcels to the original agreement, or change the scope of the required services. | |||
The Supplemental Negotiator Services Agreement refers to specifications as recited in original agreement, so it becomes imperative that such requirements and specifications are effective at the date "new" parcels or required services are added to the original contract. New parcels shall be construed to mean tracts not previously included or where the plan or ownership revisions are so acute as to require additional services. Also a calendar period or time frame in which the work is to be completed must be specified. | The Supplemental Negotiator Services Agreement refers to specifications as recited in original agreement, so it becomes imperative that such requirements and specifications are effective at the date "new" parcels or required services are added to the original contract. New parcels shall be construed to mean tracts not previously included or where the plan or ownership revisions are so acute as to require additional services. Also a calendar period or time frame in which the work is to be completed must be specified. | ||
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===236.7.8.7 Contract Negotiator Performance Evaluation=== | ===236.7.8.7 Contract Negotiator Performance Evaluation=== | ||
The last paragraph of | The last paragraph of Proposal for Contract Negotiation (Form 7-8.4, RW33) (Form RW33 is accessible in [http://sp/sites/eagreements/SitePages/Home.aspx eAgreements]), advises contractors that their overall performance will be carefully evaluated and that failure to perform at an acceptable level can result in their removal from MoDOT’s Roster of Approved MoDOT Contract Negotiators. | ||
Properly used, the Performance Evaluation can be of considerable value to MoDOT in effectively managing contract negotiations work. | |||
<b>Notification to Contract Negotiator of Removal from Roster of Approved MoDOT Contract Negotiators</b></br> | |||
In the event the fee negotiator is found to have unsatisfactory performance or unsatisfactory work product outlined in scope of services, MoDOT has the right to remove the fee appraiser from the roster. | |||
==236.7.9 Special Benefit Acquisitions== | ==236.7.9 Special Benefit Acquisitions== | ||
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===236.7.9.2 Special Benefit Acquisitions=== | ===236.7.9.2 Special Benefit Acquisitions=== | ||
[ | [https://epg.modot.org/forms/RW/Chapter%207_Negotiation/Sample%20Ltr%20Special%20Benefit%20Offer%20Letter%20Form%207.9.2.docx Special Benefits] are those benefits accruing to the land adjacent to the public improvements that do not accrue to the public at large. When an appraisal reveals an enhancement in the value of an owner's remaining property the enhanced value may merely be reflected in a lowered estimate of Just Compensation, or it may result in a zero indication of Just Compensation. Both situations are to be considered Special Benefit cases. | ||
Special benefits reflected in an appraisal must be supported with concurrence from district counsel and written documentation attached to the appraisal. | Special benefits reflected in an appraisal must be supported with concurrence from district counsel and written documentation attached to the appraisal. | ||
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Dual compensation amounts will be offered to owners of residentially improved properties, to reflect the acquisition area with special benefits to the remainder, and the acquisition of the entire property at its before value. | Dual compensation amounts will be offered to owners of residentially improved properties, to reflect the acquisition area with special benefits to the remainder, and the acquisition of the entire property at its before value. | ||
Dual offers for residentially improved properties are implemented at the discretion of the Right of Way | Dual offers for residentially improved properties are implemented at the discretion of the Asst. to the State Design Engineer - Right of Way. It will be solely the discretion of the Asst. to the State Design Engineer - Right of Way to apply this policy to other than residential property. The size and value of a remainder may dictate the MHTC’s ability to acquire entire large, higher valued properties. | ||
'''A. Dual [ | '''A. Dual [https://epg.modot.org/forms/RW/Chapter%207_Negotiation/Sample%20Ltr%20Special%20Benefit%20Offer%20Letter%20Form%207.9.2.docx Offers for Special Benefits] on Residentially Improved Properties''' | ||
Dual offers are to be extended at the initiation of negotiations for properties where residential improvements are affected. | Dual offers are to be extended at the initiation of negotiations for properties where residential improvements are affected. |
Latest revision as of 14:53, 13 December 2024
- Acquisition Payment (Form A-419)
- Administrative Settlement Justification Letter (Form 7-3.3.1)
- Application for Employment as Contract Negotiator (Form 7.8.1)
- Appraisal Review and Approval of Just Compensation (Form 6.4.3)
- Contract Negotiator Performance Evaluation (Form 7-8.7)
- Disclaimer of Interest in Tenant Owned Improvement (Form 7-2.5C)
- Donation Letter & Waiver of Appraisal (Form 7-2.12)
- MoDOT Public Participation Survey (Title VI Survey)
- MoDOT Public Participation Survey (Title VI Survey) – External Version
- Negotiator's Report (Form 7-2.13)
- Offer Letter Form – Capital Improvements (Form 7.6.3)
- Offer Letter - Combined Fee and Tenant Owners - Use Prior to Condemnation (Form 7.2.5D)
- Offer Letter - Fee Owner (Form 7.2.5A)
- Offer Letter - Tenant Owner No Disclaimer (Form 7.2.5B(2))
- Offer Letter - Tenant Owner with Disclaimer (Form 7.2.5B(1))
- Preliminary Contract Negotiation Fee Estimate (Form 7-8.3)
- Pre-Trial Report
- Prorata Real Estate Tax Claim, Owner's Section (Form 7-2.22C)
- Prorata Real Estate Tax Claim, MoDOT's Section (Form 7-2.22D)
- Renewal Application for Employment as Contract Negotiator (Form 7-8.1a)
- Request for Allocation of Gross Proceeds (Form 7-7.3)
- Request for Taxpayer Identification Number and Allocation of Gross Proceeds - Sample Letter (Form 7-7.3A)
- Requirements for the Retention of Improvements (Form 7-4.2C)
- Roster of Approved MoDOT Contract Negotiators
- RWPA checklist
- Sample Letter - Release of Funds Held in Escrow (Form 7-1.17C)
- Sample Letter - Special Benefit Offer Letter (Form 7-9.2)
- Sample Letter - Transmittal of Check to Owner (Form 7-1.17A)
- Sample Letter - Transmittal of Checks to Escrow Agent (Form 7-1.17B)
- Settlement/Trial Report
- Written Notice of the Intended Acquisition for Outdoor Advertising (Form 236.7.2.6)
- Forms RW2, RW8, RW10, RW15, RW20, RW23, RW25, RW33, RW34 and RW35 are accessible in eAgreements.
236.7.1 General Provisions
236.7.1.1 Authority
The Missouri Highways and Transportation Commission is empowered by law, Chapter 227.120, RSMo., to purchase, lease or condemn lands in the name of the Missouri Highways and Transportation Commission for purposes deemed necessary for the proper and economical construction and maintenance of state highways. The Commission approves by Certification the detail plans of each project and authorizes the Chief Engineer to acquire all the land, property and rights indicated on said plans by purchase or the Chief Counsel to acquire by condemnation. The Asst. to the State Design Engineer - Right of Way has authority to acquire land, property and rights as indicated on right of way plans through the district right of way offices.
236.7.1.2 Project Authorization
Acquisition of property rights cannot commence on any project until the project manager obtains acquisition authority as described in EPG 236.3.4 Right of Way Acquisition Authority and Project Funding.
236.7.1.3 Hardship Acquisition Authorization
Justification for a hardship acquisition must be reviewed and approved by the Asst. to the State Design Engineer - Right of Way on a parcel-by-parcel basis.
236.7.1.4 Protective Buying Authorization
Justification for a protective purchase to prevent imminent development and increased costs of a parcel, must be reviewed and approved by the Asst. to the State Design Engineer - Right of Way on a parcel-by-parcel basis. Refer to EPG 236.3.4.5 Advance Acquisition - Hardship and Protective Buying for more information.
236.7.1.5 Who Conducts Negotiations
Staff Negotiations
The term "negotiator" as used here refers to any member of the right of way staff performing negotiations for property or property rights.
By authority of the Missouri Highways and Transportation Commission, negotiations for the acquisition of real property and/or property rights for highway purposes are conducted by qualified right of way personnel. Such personnel must meet the minimum qualifications for the position of right of way specialist as outlined in the Missouri Department of Transportation's Job Specifications Manual. Other right of way personnel not meeting these minimum qualifications can perform negotiations under the direct guidance of the district right of way manager, the chief negotiator, or a qualified senior or certified right of way specialist.
Individuals, who determine values on waiver valuations, may establish just compensation as well as negotiate with the owner for acquisition. An appraiser/negotiator, must fulfill the requirements of owner contact as outlined in EPG 236.7.2.
Contract Negotiations
Contract negotiators may conduct negotiations under written agreement as described in EPG 236.7.8. The amount of the fee shall be established on a parcel basis. The Right of Way Section must approve contract negotiators prior to employment. The Right of Way Section maintains a Roster of Approved MoDOT Contract Negotiators.
236.7.1.6 Acquisition of Real Property Interest
All rights, title, interest of fee hold and subordinate interests in real property are to be acquired as necessary, for the proper and economical construction, operation, protection, support, preservation and maintenance of state highways.
Generally, the use of Partial Deeds of Releases or Subordinations, on mortgages and deeds of trust are not necessary when:
- The approved compensation is based on the use of a waiver valuation.
- Only a partial acquisition is involved and the property remaining has adequate value to secure the existing mortgage or deed of trust.
- Access rights are not being acquired.
- The property is not being condemned.
This list is a general guide and is not intended to be all-inclusive. The district right of way manager should be aware of all situations waiving partial releases and subordinations.
The Right of Way Section, with concurrence from Chief Counsel's Office, approves exceptions to the acquisition of other property rights on an individual case or project basis. Exceptions may be, but are not limited to, the reservation of subsurface mineral rights, gas storage rights or a limitation on vertical dimension for multiple uses.
236.7.1.7 Public Information Brochure
A brochure entitled Pathways for Progress is available to the general public and for distribution at all public hearings for highway projects. It briefly describes the department's general procedures in the phases of appraisal, negotiation, settlement, closing, mediation and eminent domain.
236.7.1.8 Pre-Negotiation Public Relations Contact
Acquisition personnel may be assigned, commensurate with anticipated problems, to make calls upon property owners and discuss acquisition procedures and provide general information concerning the proposed highway project. An employee, who may later be involved with the appraisal, negotiation, or relocation for the project, may make such calls. Care should be taken to avoid discussing assumptions, possible offers, possible damage, or value conclusions. This initial call should be brief and is only intended to provide project information, and promote the public relations.
236.7.1.9 Negotiating Through a Third Party
Negotiations shall not be conducted through a third party unless the property owner has provided written authorization, or the third party is a legally appointed representative for the owner. If an attorney has been retained, and the owner has provided a written authority, all negotiations must be conducted with the attorney unless a written waiver of negotiations is received from the attorney.
236.7.1.10 Initiation of Negotiations
The term "Initiation of Negotiations" relates to the date on which the department presents the owners of the subject parcel, or their designated representative, a written offer for the property or rights to be acquired. When non-resident owners are involved who cannot be contacted in person, initiation of negotiations for the parcel shall be the date such owners or their designated representative received the first communication by mail or telephone from the department in which a monetary offer to purchase is made. (Certified mail with return receipt requested must be used when the above contact is made by mail to establish and document the date that the written offer is received by the relocatee or by the relocatee's representative.)
236.7.1.11 Relocation Assistance Information
Residential owner occupants being displaced are to be provided an explanation of the relocation benefits for which they are eligible. Offers to acquire property and/or property rights are not to be made to displaced owner occupants until the owner can be provided with the required relocation information.
236.7.1.12 Relocation Section Notices
"Initiation of Negotiations Statement" (RA Form 8.5.5)
This form is to be submitted to the district relocation section immediately after the first initiation of negotiation on a project, and immediately after initiation of negotiations for each individual parcel, affected by the relocation program. This form is not applicable to parcels not affected by the relocation program.
"Acquisition Statement" (RA Form 8.5.8.b)
This form is to be completed by the negotiator and submitted to the relocation section immediately after all interest in the parcel is acquired when the relocation program affects the parcel.
236.7.1.13 Pre-Negotiation Preparation
The accumulation of materials and information necessary to conduct and complete negotiations for the orderly and efficient acquisition of the proposed property and property rights is the logical first step in negotiation. At a minimum, the negotiator should be supplied with the following information:
- Title reports of all recorded interests
- Documents necessary to acquire all interests
- Right of way plans
- Appraisal reports
- Offer letter
In order to make an informed explanation of the proposed acquisition to an owner, the negotiator should make a comprehensive study of the plans, title report, documents and appraisal report. The negotiator should also know what documents will be required for closing depending on ownership and value of the property. The checklist of items (provided in the links following), include those required documents, depends on whether MoDOT or a title company will be conducting the closing.
When acquiring realty rights, verification that the correct entity has executed the conveyance document is important. Refer to MoDOT Verification of Signatory on Conveyance Documents for guidance.
The following information must be entered in the Parcel Acquisition screen in RWPA for each parcel being acquired: Parcel Number, Classification, Status and any Fee Holder and Tenants.
236.7.1.14 Delivery of Payments
Owners and Tenants
At the discretion of the district right of way manager any full-time right of way employee may deliver payment checks for acquisition of property interests.
Upon personal delivery of each check the responsible right of way employee is to obtain the signature of the recipient acknowledging receipt of the payment.
Payments mailed to owners shall be by certified mail with return receipt requested. A sample letter (Form 7-1.17A) is available for sending checks to owners/tenants.
The Mailed Check Letter and Receipt of Check must be entered in eProjects under the applicable project and parcel.
The following information must be entered in the Parcel Acquisition screen in RWPA for each parcel being acquired: Physical Possession Obtained and Legal Possession obtained.
Escrow Agents
Payments to escrow agents may be delivered by any person or by certified mail with return receipt requested. Submission of payments to escrow agents shall be by letter (Form 7-1.17B). Owners are to be notified in writing of the date their payment is delivered to escrow agent.
Release of Funds in Escrow
To release funds retained in escrow for removal of improvements, etc., the escrow agent shall be notified by written notice (Form 7-2.17C) with a copy mailed to owner involved. Escrow agents shall furnish proof of disbursement of all funds for parcel files.
236.7.1.15 Recording of Documents
All documents conveying land, easements, realty rights, mortgage releases and restrictive easements to the Commission, regardless of the consideration recited therein, shall be recorded in the appropriate recorder of deeds office and uploaded in eProjects under the applicable project and parcel.
The following data fields must be entered in RWPA on the Deeds screen, including when the acquisitions are donated: Fee Holder Deed Signed (date), Deed Recorded (date), Book Recorded No., Page Recorded No., Document No.(whichever are applicable), check the free deed box if the parcel was donated. Area acquired: provide the amount of acres/square feet acquired in each category: permanent right of way, temporary easement, permanent easement, utility easement and unity of measure.
It is not required to record disclaimers, rights of entry, releases of outdoor advertising rights and signs acquired, releases for LP tanks, or other documents that do not convey an interest in land being acquired. If tenants have a recorded lease, it may be necessary to record any of the above documents that may impact lease provisions.
Special agreements prepared by the Chief Counsel that convey, alter or qualify property rights between the parties will be recorded unless otherwise indicated by the Chief Counsel's office.
236.7.2 Guidelines and Procedures
236.7.2.1 Purpose
This information establishes guidelines and procedures related to the acquisition function in negotiations for land, property and rights needed for the proper and economical construction and maintenance of state highways. The intent and purpose is to assure uniform acquisition practices, which will provide consistent and equitable treatment for owners and tenants of real property acquired.
236.7.2.2 General Procedure
All negotiations shall be expeditious and result in the property owner receiving just compensation; the settlement being just and fair to the owner and the public; every courtesy, consideration and patience being extended to the property owner; and create trust in the Missouri Department of Transportation Department and its employees.
All offers shall represent the approved amount of Just Compensation as determined through the department's valuation procedures. The negotiator shall make a reasonable effort to demonstrate and promote confidence in the Approved Just Compensation offer.
If the negotiator discovers facts, which were not recognized in the Just Compensation, the information shall be made available to the district right of way manager. Full consideration to and evaluation of these items will be made prior to continuation of negotiations.
Negotiators must demonstrate that they represent the interests of the property owner as well as those of the public. Care should be exercised at all times to protect the interests of owners who may be unfamiliar or inexperienced in real estate transactions.
Negotiators are required to maintain a written Record of Negotiations, documenting that all elements of the transaction were given adequate consideration and that there was a mutual understanding between the negotiator and the property owner.
236.7.2.3 Prompt Offer of Just Compensation
All offers of Approved Just Compensation shall be promptly presented to property owners or their designated representatives. A minimum offer of $500 shall be made to a property owner when the appraised value is determined to be less than $500. It may be appropriate to reduce the minimum offer under certain circumstances with the approval of the Assistant to State Design Engineer – Right of Way. If approved, a reduced minimum offer will apply to the entire project. District management should determine the appropriate timing for delivery of offers within the scope of good negotiating practices. An offer letter must be presented to the owner at least 30 days prior to filing a condemnation petition, as further described in EPG 236.10.
236.7.2.4 Offer Letter and Supporting Documentation
Use Form 7.2.5A, 7.2.5B(1), or 7.2.5B(2). Delete unused phrases and instructions. Use the date the offer letter is delivered or mailed to the owner.
A. Delivery of Offer Letter
Offer Letters must be hand delivered or sent by certified mail. A cover letter providing an explanation of the proposed acquisition and the supporting documents described in EPG 236.7.2.4C should be included if the offer is delivered by mail. If an offer must be made by phone, it must be followed with an offer letter and all required attachments sent by certified mail.
When an owner has authorized a designated representative and so notified MoDOT in writing, or there is a court-appointed representative, the Offer Letter need only by delivered to the representative.
B. Initiations of Negotiations
Delivery of an Offer Letter establishes the Initiation of Negotiation date for a parcel. Initiation of negotiations is established by the delivery of an offer letter to one owner of a multiple ownership, but all owners are to be furnished all relevant offer items described in EPG 236.7.2.4C.
C. Supporting Documents
Upon initiation of negotiations for the acquisition of property or property rights from a property, each owner or representative will be provided with the following:
- Offer letter
- Appraisal or waiver valuation
- Pathways for Progress brochure
- Conveyance documents
- Blank Escrow Agreement, if applicable
- Pro Rata Real Estate Tax Claim form
- Plan sheet, portion of plan sheet or plat illustrating the acquisition and the remainder
- When applicable and appropriate, provide Request for Allocation of Gross Proceeds, (Form 7-7.3).
MoDOT's External Civil Rights Division is in charge of delivering MoDOT’s Public Participation Survey (Title VI Survey) to property owners and recording the information returned in the Parcel Acquisition screen in RWPA under the applicable project and parcel.
D. Donation
An offer letter is not required when requesting donated property and property rights. Refer to EPG 236.7.2.11 Donation of Real Property.
236.7.2.5 Offer Letter Formats
A. Fee Owners
Applicable portions of the Offer Letter - Fee Owner (Form 7.2.5A), along with the appraisal or waiver valuation, are to be delivered to the fee owner or a designated representative.
B. Tenant Owners
- 1. Offer Letter - Fee Interest Acquired or Disclaimed
- Offer Letter-Tenant Owner (Form 7.2.5B(1)) is to be used for offers to owners of tenant-owned improvements when the owners of the land have conveyed their interest, or when the landowners have disclaimed all interest in the tenant-owned improvements.
- 2. Offer Letter - Fee Interest Not Acquired or Disclaimed
- When the land owners have not conveyed or disclaimed their interests in the tenant-owned improvements, the offer to tenant-owners will be made by use of a letter designated as Offer Letter - Tenant Owner No Disclaimer, (Form 7.2.5B(2)) with a Disclaimer (Form 7.2.5C) attached.
- The tenant offer will be conditioned upon the tenant obtaining execution of the necessary disclaimers. Completion of the transaction including Release of Structures and Leasehold, (CCO RW15) (Form RW15 is accessible in eAgreements) and payment shall not be made unless the landowners convey their interest by deed or provide a disclaimer.
C. Disclaimer by Owner in Tenant Owned Improvements
When a separate amount of just compensation is approved for an improvement owned by a party other than the owner of the land, payment for such improvement shall not be made unless the owner of the land disclaims all interest in the tenant-owned improvement. The fee owner may disclaim interest in such improvement by execution of either a deed of conveyance of right, title and interest or a Disclaimer (Form 7.2.5(C)).
When the fee owner does not execute a deed or a disclaimer, the offer of just compensation for the improvement and the disclaimer will be presented to the tenant owner with the condition that settlement will be made provided that the tenant is successful in obtaining execution of the necessary disclaimers.
D. Combined Fee-Owner and Tenant-Owner Offer Letter for Condemnation Purposes
Immediately prior to condemnation proceedings for a parcel where tenant-owned structures are involved, a letter designated Offer Letter - Combined Fee and Tenant Owners, (Form 7.2.5D), is to be presented to all fee owners of record or their designated representative with a copy of the letter to all tenant owners.
This offer will be the total of the amounts of just compensation approved for fee and tenant owners. The brochure, deed and valuation document are not required with this letter.
E. Revised Offers
When the approved just compensation has been presented to the owner and it is revised through the appraisal process, it is necessary to provide such owners with an offer letter reflecting the revised figure and reason for the revision.
- 1. Fee Owners
- The first paragraph of Offer Letter - Fee Owner (Form 7.2.5A) will be omitted and replaced with the
following paragraph for revised offers.
- "In a previous letter you were offered the sum of $____________ for certain real property and rights needed for improvement of the above highway project. It is necessary to revise that offer previously made to you because ____________."
- Use the remaining paragraphs from the original letter, and the following, if appropriate. “Also attached is a revised valuation document”.
- 2. Tenant Owners
- The first paragraph of Offer Letter - Tenant Owner, Forms 7.2.5B(1) and 7.2.5B(2), will be omitted and replaced with the following paragraph for revised offers.
- "In a previous letter you were offered the sum of $____________ for certain structures located on property needed for improvement of the above highway project. It is necessary to revise that offer previously made to you because _____________________."
- Use the remaining paragraphs from the original letter, and the following, if appropriate.
F. Rescinded Offers
In certain situations, it may be necessary to rescind an offer due to a plan change, delay in funding, etc., that eliminates the need to acquire any property and property rights. When this occurs, a written notice rescinding the offer shall be sent to the property owner by certified mail. The notice should include the reason an acquisition from the property is no longer needed.
236.7.2.6 Improvements Acquired or Damaged
A. Interest in Improvements Acquired
An equal interest shall be acquired in all buildings, structures or other improvements determined to be a part of the real property when such improvements are to be removed from the land acquired.
B. Improvements Located Partially Within the Acquisition Area
Improvements located partially within the acquisition area that are designated for removal as indicated by temporary easements shall be totally removed, unless the owner retains the improvement and cuts it at the new boundary line.
The decision to allow an owner to retain and cut an improvement at the new boundary line, must be made during negotiations. In making this decision the owner is to understand that the Department will have to reevaluate its offer through the appraisal process. If a revised offer is unacceptable to the owner, the original offer and plan for total removal of the improvement will apply and if necessary condemned as originally designed.
C. Fee-Owned Improvements
Owners will be compensated for any loss in fair market value of improvements that are not required to be removed but are adversely affected as a result of the acquisition, as determined by appraisal.
D. Tenant-Owned Improvements
Tenant-owned improvements will be acquired by Release of Structures and Leasehold, (Form 7-2.7D (CCO RW15)). (Form RW15 is accessible in eAgreements.)
- 1. Improvements Acquired or Damaged - Release of Structures and Leasehold
- Tenants who have the right or obligation to remove real property improvements that contribute to the real estate value, as determined in the appraisal process, have a compensable interest in those improvements. Compensation may include one or more of the following:
- The contributory fair market value for the improvement being acquired, or the value for removal purposes which ever is greater
- Damages the improvement suffers as a result of the acquisition
- The value of any leasehold interest
- 2. No Payment to Tenant Before Fee Interest Acquired or Disclaimed
- No payment shall be made to a tenant for an improvement unless the landowner involved conveys or disclaims all interest in the improvement.
- 3. Condemnation of Tenant-owned Improvements
- Eminent Domain Law provides the same rights and protections to tenants and fee owners. Any tenant has the right to reject payment for improvements as outlined above and obtain payment for such property interests through eminent domain proceedings applicable to Missouri law. In these situations it will be necessary to condemn all interest in the property including the fee owner.
E. Acquisition of Outdoor Advertising Billboards
Outdoor advertising structures are defined as all signs, billboards, drawings or paintings which advertise activities conducted elsewhere or services and/or products provided other than at the subject property. They should not be confused with on-premise signs, which advertise activities conducted on the premises or services and/or products provided on the property.
It has been determined that owners of outdoor advertising signs have the right or obligation to remove such structures at the termination of the lease or agreement. Therefore, such structures are generally acquired with a quitclaim deed, as addressed above, with the following exceptions.
- 1. Outdoor Advertising Structures Considered Real Estate
- All outdoor advertising structures shall be valued as real estate and an offer made for just compensation. In the event a sign is categorized as Conforming out of Standard by the Outdoor Advertising staff, the right of way staff will follow the Sign Agreement Reset Program procedures.
- 2. Salvage of Outdoor Advertising Billboards
- Retention and salvage of outdoor advertising structures is permitted, provided the offer is reduced by the salvage value established in the valuation process. The salvage value may be waived or reducted during negotiations to reach an administrative settlement.
- As a means to facilitate negotiations, district right of way may agree to leave the sign in place for a specified period of time by use of an Extension of Possession Agreement (CCO RW12). The agreement must state a maximum time period for the sign to be left in place, and a physical possession date must be agreed to by the parties. The physical possession date shall be specific, and not merely include phrases like, “until construction of the project,” “until needed for construction,” etc. For more information on removal procedures, refer to EPG 236.5.26.
- Outdoor advertising structures located partially within the acquisition area shall be totally removed unless the owner of the sign retains the structure and modifies it to completely avoid Commission owned property. Contact your local outdoor advertising permit specialist for specific requirements related to modifying existing outdoor advertising structures. See EPG 236.16 for additional information pertaining to outdoor advertising.
The Outdoor Advertising Profile Report, which is generated by the outdoor advertising permit specialist, shall be completed by district right of way and returned to the outdoor advertising permit specialist once the acquisition of the billboard is complete.
Sign Agreement Reset Program – Partial Waiver and Reset Agreement
Legislation from 2012, HB1402, allows sign owners who meet the conforming out of standard sign criteria the option to accept just compensation or waive a portion of their right to just compensation and reset a qualifying sign. Sign owners that choose to accept just compensation are eligible to salvage the sign, however the sign permit will be cancelled by the Outdoor Advertising Specialist.
Conforming out of standard signs are categorized as signs that fail to meet the current statutory and administrative rule requirements but comply with the terms of the federal state agreement and meet the statutory requirements of 1999. (See EPG 236.16.7.3 Conforming Out of Standard.)
Displaced signs will be reviewed by outdoor advertising staff to determine the sign qualifications. If the qualifying sign meets the reset requirements as determined by the Outdoor Advertising Profile Report (refer to EPG 236.16.19 Sign Structures Affected by Highway Projects), Right of Way staff will offer just compensation to the sign owner for the purchase of the sign. The sign owner will also be offered the sign reset option that allows them to move the sign elsewhere within the same property or on an adjoining property. It is the sign owners choice to accept either just compensation or the reset option.
Guidelines for the Conforming Out of Standard Sign Acquisition:
- Right of Way staff will notify outdoor advertising staff of an affected sign. Affected sign includes billboards located within the project limits.
- Outdoor Advertising staff will complete the Outdoor Advertising Profile Report (EPG 236.16.19) to determine qualification of the affected sign and provide a copy to the Right of Way Manager.
- If the sign is classified as Conforming Out of Standard, the right of way staff will provide the sign owner the Written Notice of the Intended Acquisition for Outdoor Advertising (Form 236.7.2.6).
- Right of Way staff will appraise the affected sign for just compensation and appraise the reset option compensation as described in the appraisal guidance.
- Right of Way staff will obtain the disclaimer from the property owner. (Refer to EPG 236.7.2.5 Offer Letter Formats.)
- Right of Way staff will prepare the offer letter for just compensation.
- Right of Way staff will prepare the Partial Waiver and Reset Agreement with the assistance from the Outdoor Advertising Specialist and provide the Outdoor Advertising Specialist a copy. The reset compensation is a solitary payment and will not be supplemented by any other payment type.
- The Right of Way staff will present the offer letter and explain the reset option to the sign owner who will choose their preferred option of compensation. It may be beneficial for the Outdoor Advertising Specialist to accompany the right of way staff at this meeting.
- If the sign owner chooses the reset option, the sign owner will obtain the necessary support documents outlined within the Partial Waiver and Reset Agreement, execute the Agreement, and return it to the Right of Way Specialist. The Right of Way Specialist will provide a copy of the Agreement to the Outdoor Advertising Specialist who will amend the sign permit.
- The Right of Way Specialist will process the payment outlined within the Partial Waiver and Reset Agreement and retain a portion of the reset payment within an escrow account. The retained portion should equal the cost of the sign removal in the event the sign owner does not remove the existing sign.
- The Outdoor Advertising Specialist will conduct a final inspection to determine if the sign has been removed from the construction limits within the allotted time frame. (Refer to EPG 236.16.19 Sign Structures Affected by Highway Projects.)
- The Outdoor Advertising Specialist will notify Right of Way that the sign has been removed from the construction limits. Right of Way will notify the Escrow Agent to release the funds in escrow to the sign owner.
If the sign owner does not remove the sign from the project limits, Right of Way will notify the Project Manager to include the demolition in the construction contract.
In the event the sign owner refuses just compensation and the reset option, the sign will be condemned as outlined in EPG 236.10.1 Introduction.
F. On-premise Signs
On-premise signs are those that advertise activities conducted on the premises or services and/or products provided on the property. All on-premise signs, including trademark and logo signs, shall be treated as personal property under the Relocation Assistance Program. The only exception would involve a situation in which the subject business facility is being acquired or there is insufficient remaining land on which to relocate the sign. Only these circumstances would necessitate that a sign be valued and acquired as real estate.
G. Existing Private Utility Easements
On projects where an existing utility is located on a private easement, and the limits of the new land acquired for the project will encompass the existing private utility easement, the district shall secure said easement rights by quitclaim deed (CCO RW2). The district utility engineer will work directly with the utility owners to obtain said quitclaim deeds. For information related to how to prepare the description to be included in the quitclaim deed, see EPG 236.4.6.6.
H. Acquisition of Mobile Homes
Mobile home acquisitions must be accompanied by a Certificate of Title from the seller or, if originally purchased prior to August 28, 1989, and assessed as real estate, a statement from the County Assessor attesting to this fact, along with a notarized descriptive bill of sale from the seller.
The Certificate of Title or statements must be submitted to the Department of Revenue within 30 days for transfer of title to the MHTC. There will be a penalty fee if renewal is more than 30 days after acquisition. For additional information, refer to EPG 236.6.3.1.19.D.9 and RSMo. 700.
236.7.2.7 Valuation by a Negotiator – Separation of Functions
For acquisitions where Just Compensation was determined by a Value Finding or Standard appraisal format, the valuation and approval of Just Compensation must be prepared by an individual other than the individual that will present the offer letter and negotiate for the acquisition. On a simple valuation/acquisition situation, in which the valuation will be by waiver valuation, the same individual may estimate the Just Compensation and negotiate the acquisition. If the same individual performs both functions, the appraiser/negotiator must do the following:
- contact the owner
- deliver or mail the Pathways for Progress brochure
- advise the owner that the property will be inspected (invitation to accompany inspection is not required on waiver valuations)
- prepare a waiver valuation
- secure co-signature of the waiver valuation
- prepare an offer letter based on the waiver valuation
- deliver the offer letter to the owner, with all the supporting documents set out earlier in this section.
236.7.2.8 Negotiation Contacts
A. Personal Contact
Every reasonable effort shall be made to personally contact owners of real property or a designated representative who resides within the state. The negotiator shall explain the proposed acquisition and provide the owner or representative with those documents identified earlier in this section.
B. In-State Owner Resides in Another MoDOT District
If a property owner resides within the state, but outside the district where the property is located, and it is not practical for a local negotiator to make a personal contact, the owner may be contacted in person by a negotiator from another district. Requests to other districts for such assistance shall include all necessary documents and information essential to the negotiation assignment.
When a personal contact is not practical, the owner may be contacted by certified mail, return receipt requested.
C. Out-of-State Owner
An out-of-state owner may be personally contacted, if practical, or contacted by telephone and certified mail, return receipt requested. When an owner is contacted by mail, provide the required written information identified earlier in this section, and an explanation of the proposed acquisition.
236.7.2.9 Negotiation Procedures
The following is a general guide as to the number and content of negotiation contacts. Normally three contacts are needed to assure the owner’s understanding and confidence.
During the first contact the negotiator is to:
- Provide brochure, Pathways for Progress
- Review title information
- Explain the right of way plans and provide plan sheet, portion of plan sheet, or plat illustrating the acquisition and the remainder
- Explain the acquisition procedures and provide blank Escrow Agreement, (Form 7-4.2 (CCO RW8)) if applicable
- Explain Proration of Taxes and provide Prorata Real Estate Tax Claim, Owner's Section, (Form 7-2.22C)
- Provide the written Offer Letter
- Provide the appraisal or waiver valuation
- Provide conveyance documents
- Provide or agree to obtain answers to the owner’s questions
- Provide a Vendor Input Form or a W9 for completion.
During the second contact the negotiator should review the items discussed during the first contact. The negotiator should give special attention to making sure the property owner understands the plans and the effect on the remaining property. Any additional questions the owner has should be answered.
During the third contact the negotiator should attempt to get the owner to accept or reject the offer. If the owner fails to accept or reject the offer, or does reject the offer, the mediation and condemnation process are to be explained. The owner is to be advised that negotiations can continue until such time as the condemnation commissioners' report is filed.
Obtain a taxpayer identification number (TIN) using a Vendor Input Form or a W9, whichever is applicable, as shown in EPG 236.7.7. If a husband and wife own the property, either one can provide their TIN. Partnerships and trusts should have their own TIN that should be used for reporting real estate transactions. If there is more than one owner, other than a husband and wife, partnership or trust, each owner that is expected to receive an allocation of the proceeds shall be given a form on which to provide their TIN.
During negotiations, the negotiator’s objective is to promote understanding of the design and reasonableness of the offer. If the owner disagrees with the offer, the negotiator should attempt to determine the reasoning of the owner’s opinion of value or their objections to design considerations. The owner’s opinion of value, reasoning, counteroffers and objections are to be documented in the negotiator’s report and discussed with the chief negotiator or district right of way manager. If the negotiator is unable to acquire the property for the approved offer, an administrative settlement may be considered as described in EPG 236.7.3.
If at any stage of negotiations it is determined that a design change is appropriate and can facilitate successful negotiations, the district right of way manager and project manager will be consulted on the proposed change, and a decision made. The property owner is to be advised accordingly.
A. Time to Consider Offer
The property owner shall be allowed a reasonable period of time to consider the offer of just compensation and the opportunity to obtain professional advice or assistance if so desired.
236.7.2.10 Uneconomic Remnants and Future Excess Property
A. Definition of Uneconomic Remnant
"A parcel of real property in which the owner is left with an interest after the partial acquisition of the owner's property, and in which the acquiring agency has determined has little or no value or utility to the owner." (49 CFR 24.2 (w), 10/1/93)
B. Offer to Purchase Uneconomic Remnants
An offer to purchase each uneconomic remnant shall be made to the owner simultaneously with the offer of just compensation for the acquisition of the needed realty and realty rights. Situations revealed during negotiations or administrative decisions to consider all or part of remainders as uneconomic remnants, may necessitate a revised offer reflecting the value of the uneconomic remnant.
Multiple uneconomic remnants shall be individually identified and individual values set out in the offer letter.
The Commission will not condemn for the acquisition of an uneconomic remnant.
The following data fields must be entered in the Remnants Screen in RWPA under the applicable project and parcel: Remnant Number, Status, Physical Possession Obtained, Payroll Amount, Payroll Date, Deed Signed Deed Recorded, Area Acquired, and Unit of Measure.
C. Outright Sale of Uneconomic Remnants
The district is authorized to sell any uneconomic remnant not exchanged during negotiations as described in EPG 236.5.12 Excess Land Conveyances & Relinquishments – Regulated Utilities.
D. Definition of Future Excess Property
Any area of existing property that is to be conveyed to adjacent property owners as established in the change in route status documents for the project.
E. Exchange of Remnants or Future Excess Property for New Property
The district is authorized to exchange uneconomic remnants, or future excess property for real property or rights acquired when the exchange is for equal value based on the purchase price of the remnant or appraised value of the future excess, and the remnant or excess adjoins the owner's remaining property. Such an exchange is to be handled like an Administrative Settlement, under the approval of the district right of way manager.
When remnants or future excess property are exchanged for new property, the amount of just compensation to the owner shall be reduced by the value of the remnant or excess and the warranty deed from the owner shall recite the reduced monetary amount, along with the phrase, "and exchange for other land".
Since the future excess property will still be needed until the project is complete, the following paragraph will be included in all quitclaim deeds conveying the future excess to the abutting property owner:
- "The Missouri Highways and Transportation Commission retains full, free, and uninterrupted use and possession of the land herein conveyed until completion of construction and acceptance of the project for the construction of relocated _____________________ by the Commission’s District Engineer."
When this paragraph is included in the quitclaim deed a cloud is placed on the title. To remove this cloud, the district, upon request of the owner, can provide an affidavit as to completion and acceptance of the project.
Remnants or excess property exchanged for new property will be conveyed by quitclaim deed for the consideration of "One Dollar and Exchange for Other Land." Should the owner refuse to accept a quitclaim deed, contact the Right of Way Section for authorization to use a warranty deed where the Commission owns fee title to the property being exchanged.
All conveyances of remnants or future excess property by the Commission shall provide for utilities as described in EPG 236.5.12 Excess Land Conveyances & Relinquishments – Regulated Utilities.
236.7.2.11 Donation of Real Property
In some instances property owners affected by small, uncomplicated acquisitions of realty and/or realty rights may be willing to donate the property that is needed for the project, especially when the project improvements provide a benefit to the property and community.
The Missouri Highways and Transportation Commission will accept a donation of property. An appraisal and offer letter are not required when property is being donated, however, some documentation is necessary.
A. Coercion to Donate
It would be inappropriate for an acquiring agency during negotiations to inform the property owner that the needed realty and/or realty rights would have to be donated in order for the roadway project to be completed. The only acceptable circumstance would involve a project that would be terminated unless all owners agreed to donate.
B. Donation/Waiver of Appraisal Letter
Prior to acceptance of such donation, the negotiator must inform the owner of the right to receive just compensation for the property. The negotiator must obtain a signed Donation/Waiver Letter, (Form 7-2.12), which acknowledges the owner’s right to receive just compensation as determined by an appraisal. Should the owner refuse to sign the statement yet still wants to donate the property, the Negotiator's Report shall be fully documented as to the owner being advised of their rights and any reason for refusing to sign the letter.
C. Donation of Temporary Easement Without Waiver Letter
When temporary easements cause no compensable damage to the adjacent property, a donation can be obtained without advising the owner of the right to just compensation. In such situations the plans should be explained to the owner and a request made for the donation. In this case, the executed easement document is all that is necessary. A Donation/Waiver Letter is not required. However, the file shall be documented regarding the determination that the acquisition of the temporary easement causes no compensable damage to the adjacent property.
D. Waiver of Releases on Donated Property
When non-complex property or property rights are donated, the district right of way manager may waive acquisition of additional property interests (like partial mortgage releases, easement owners, tenant interests, etc.), but a memo outlining the waiver to acquire additional property interests should be included in the file.
E. Donations by Government Agencies
Donations by government agencies do not require the use of a Donation/Waiver Letter. For acquisition from government agencies, see EPG 236.7.5.
236.7.2.12 Negotiator’s Report and Contact Log
A Negotiator’s Report, (Form 7-2.13), shall be completed with attachments and signed by the negotiator upon termination of or completion of negotiations for each parcel. A log of all contacts with the owner or representative shall be completed and attached to the Negotiator’s Report. The information for each contact should include the date and place of each contact, parties contacted, offers made, counteroffers, issues raised by the owner, reasons settlement could not be reached, and any other pertinent data. Each contact entry shall include the name or initials of the person who prepared the entry.
When negotiations are unsuccessful, and the negotiator considers further attempts to negotiate to be futile, recommendations for action should be recorded.
The negotiator’s report must be uploaded to eProjects under the applicable project and parcel.
236.7.2.13 Payment Prior to Possession
No owner will be required to surrender possession of real property acquired for highway purposes prior to payment of the agreed purchase price or payment of the Commissioners' Award into court for property acquired by condemnation proceedings.
236.7.2.14 Title Update Prior to Payment
Prior to payment to an owner for property and/or property rights, the public records must be searched to determine that no transactions have occurred on the property being acquired subsequent to the latest title search. This must be done on each parcel except when a title insurance company or abstractor is employed by written agreement to act as escrow agent to make distribution of funds. When a bank or other parties act as escrow agents, the title update shall be made prior to delivery of checks to such escrow agents.
236.7.2.15 Possession and Vacancy Notices
Owner and tenant occupants of buildings acquired for highway purposes shall not be required to move from a dwelling or to move a business, nonprofit organization or farm operation without at least 90 days' written notice of the date by which such move is required.
Possession policies and procedures for sending notices to vacate are contained in EPG 236.8.14 Relocation Assistance Program - Possession Policies and Vacancy Notices.
236.7.2.16 Extension of Possession and Fair Rental Value
When the proposed letting schedule permits, an owner or tenant may be authorized an extension of possession based on a monthly rental rate, as described in EPG 236.5.26 Acquired Improvements. An Extension of Possession Agreement, (Form 5-6.4 (CCO RW12)), (Form RW12 is accessible in eAgreements) shall be used when the original occupant is allowed to extend possession up to one year. If it is necessary to extend possession beyond the one year time period, the Extension of Possession Agreement shall be canceled and replaced with a Lease of Premises Agreement, (Form 5-5.5 (CCO RW14)). (Form RW14 is accessible in eAgreements.) An extension of possession that is expected to last beyond one year is to be written on a Lease of Premises Agreement rather than an Extension of Possession Agreement.
When an owner or tenant is granted an extension of possession, a monthly rental rate shall be established and should be collected in advance for each monthly period of extension. The rental value for owner-occupied and tenant-occupied property will be determined by the method established in EPG 236.5.26 Acquired Improvements.
236.7.2.17 Coercion
The Uniform Act forbids an acquiring agency from taking any coercive action in order to compel owners to agree on a price for their property. All negotiations shall be conducted in such a manner as to avoid coercing owners to reach agreement. Condemnation shall not be used as a threat. The property owners shall be given a reasonable amount of time to consider the offer and to obtain professional advice or assistance if they so desire. The agency shall not advance the time of condemnation, or defer negotiations or condemnation or the deposit of funds with the court, in order to induce an agreement on the compensation to be paid for the property.
236.7.2.18 Non-Discrimination
The real estate acquisition function shall be conducted in such a way and manner as to assure that no person shall on the ground of race, color, religion, creed, national origin, sex, age, ancestry, or physical ability be denied the benefits to which the person is entitled or be otherwise subjected to discrimination.
236.7.2.19 Acquisition by Mediation
Mediation is an option offered by MoDOT that can be described as a process in which a neutral and impartial third party assists parties in disagreement to negotiate an acceptable settlement. Complete policies and procedures regarding mediation are described in EPG 236.11 Mediation.
Mediation is not intended to replace or reduce the importance of the negotiation process for the acquisition of property and/or property rights nor does it preclude the use of administrative settlements.
Should the mediation process not be successful with the parties failing to reach agreement, the needed property and property rights will then be acquired by the normal condemnation process.
Mediation shall be offered, in writing, to all property owners (who have not settled) prior to filing a condemnation petition, unless approval is received from the Asst. to the State Design Engineer - Right of Way and the Chief Counsel’s Office.
Prior to offering mediation or in the event mediation has been waived, the Impasse Letter can be provided to the property owner as another tool to communicate the necessity to settle the parcel.
236.7.2.20 Acquisition by Condemnation
A. When Condemnation Procedure Initiated
Complete policies and procedures regarding eminent domain procedures are described in EPG 236.10 Condemnation Procedures. An appropriate time to consider condemnation is when it is determined that the property and property rights cannot be acquired through negotiations or mediation. Mediation must have at least been offered to the property owner before proceeding with condemnation.
B. Transfer of Responsibility From Right of Way to District Counsel
When it is determined that a property cannot be acquired through negotiation or mediation, the responsibility of acquisition is transferred to the district counsel. Negotiation to acquire the property can continue by either the negotiator or attorney assigned to the tract, until the commissioner’s award has been filed.
C. Information Packet Required by District Counsel
The information needed by the district counsel’s office includes but is not limited to the following:
- Negotiator’s Report, (Form 7-2.13) and typed Negotiator’s Log detailing counteroffers and settlement offers, requests for design changes, etc.
- Latest title report
- Two copies of appraisal with Approval of Just Compensation, (Form 6.4.3)
- List of parties to be named as defendants and served notice
- Copy of pertinent documents (i.e. easements impacting the acquisition area, trust agreements, etc).
- Copy of pertinent correspondence
- Copies of property descriptions to be used in the Condemnation Petition.
- Copies of the Legal Description, Exhibit A for each property description submitted.
D. Owner’s Expenses in Condemnation Are Not Reimbursable
When MoDOT institutes and concludes a condemnation action to acquire real property, the owner of the property is not entitled to reimbursement for their expenses, including attorney, appraisal and engineering fees actually incurred because of the condemnation proceedings.
236.7.2.21 Reimbursement of Owner’s Expenses
A. Reimbursement of Property Transfer Expense
The owner of property acquired will be reimbursed for recording fees, transfer taxes and similar expenses incidental to conveying the property. These expenses are normally paid directly by the department.
B. Reimbursement of Mortgage Prepayment Penalty
Owners will be reimbursed for actual penalty costs for prepayment of a preexisting mortgage entered into in good faith and filed of record prior to the initiation of negotiations. These costs will be reimbursed when the property is acquired in its entirety or the acquisition is of such magnitude that the remainder will not provide collateral for the mortgage and/or the mortgagee legally requires penalty costs for prepayment of the mortgage. The owner is responsible for submission of paid receipts of penalty costs and request for reimbursement to the district office.
C. Reimbursement of Real Estate Tax
Information pertaining to the reimbursement of taxes is contained in the offer letter and the Pathways for Progress brochure. During negotiations, the owner will be provided with the Prorata Real Estate Tax Claim, Owner's Section (Form 7-2.22C).
Owners will be reimbursed for a pro rata portion of the state, county and city real estate taxes paid for the current taxable year on property purchased by the Commission. The pro rata portion of taxes will cover the full number of months remaining in the calendar year after payment is received by the owner or escrow agent for the property. Claims for reimbursement must be made within six months after the city or county tax delinquent date. Delinquent tax payments are not reimbursable. The owner is responsible for submission of paid tax receipts and Form 7-2.22C to the district office for reimbursement.
- 1. Pro-ration of Real Estate Taxes
- The following procedures will be followed for computing the pro-ration of real estate taxes, for all contiguous holdings under the same ownership normally considered in a before and after appraisal. The Prorata Real Estate Tax Claim (Form 7-2.22C) is self-explanatory.
- a. Total Acquisition of Property
- Divide the annual taxes by 12 and multiply by the number of full months remaining in the taxable year after payment is delivered to the owner or escrow agent or the condemnation award is paid into court.
- b. Partial Acquisition of Property:
- Divide the approved compensation, payable to fee holder for land, improvements, property rights and/or damage to remainder, by the value of the entirety as indicated on line E, (1) of right of way Form 6.4.3, then multiply computed percentage by the amount on the tax bill. Divide the resulting figure by 12 and multiply by the number of full months remaining in the taxable year after payment for the realty rights is delivered.
- c. Impact of Waiver Valuation on Proration of Taxes
- If the compensation for realty rights is established by the use of a waiver valuation, the property value established by the County Assessor can be used in the calculation.
- d. Impact of Administrative Settlements and Condemnation on Proration of Taxes
- The amount of an administrative settlement or condemnation award is not a factor in computing tax reimbursement. Computations will be done in the exact same manner as when property is acquired at the approved offer.
- e. Impact of Exchange of Land on Proration of Taxes
- When land owned by the state is traded for land acquired, the owner is eligible for reimbursement of taxes. In most instances when a trade occurs there will be an appraisal of both the land to be traded and the land acquired; therefore, when tax reimbursement is determined, the trade will be given the same consideration as though a cash transaction had transpired.
- f. Impact of Donation on Proration of Taxes
- When land is donated, the owner is eligible for reimbursement of taxes. Value of the land donated and value of entirety can be determined by utilizing data from the County Assessor's office.
- g. Impact of Damage-Only Offers on Proration of Taxes
- Should the acquisition consist solely of damages caused by the imposition of temporary easements and no permanent reduction in value is evident in the after situation, proration of taxes will not be needed. In this case, the assessed value for tax purposes would not be affected by the acquisition.
D. Appeal for Expense Eligibility
Property owners may file a written appeal with the agency if they believe that the agency has failed to properly consider their application for reimbursement of expenses incidental to the transfer of title. The time limit for filing an appeal is 60 days after they receive written notification of the agency’s determination on their claim. The appeal procedure follows that of EPG 236.8 Relocation Program.
236.7.2.22 Cost of Moving Utilities
Current Commission policy provides that the cost of relocation and re-connection of privately owned service lines of a public utility is to be included with the other necessary utility work of the project, at MoDOT’s expense. Such costs should not have been considered in the appraisal process.
Most utility companies reconnect the private service lines at no cost to the property owner, but some do not. The cost to move and reconnect service lines that lie on or in existing Commission owned property is a noncompensable item. The cost to the owner to reconnect these services cannot be included in the appraised compensation.
Providing for the adjustment of utilities for a project is the responsibility of district design. There are situations, however, in which right of way personnel will have involvement. Owners of utility lines on existing Commission owned property are responsible for costs of adjustments. Therefore, the property owner may have responsibility for adjustment costs in cases where the utility company only owns the main. The department will pay for the cost of the adjustment between the old and new boundary lines.
All owners shall be advised that they are responsible for adjustment costs for their service lines on existing Commission owned property and that the department will provide compensation for any part of the adjustment on new property being acquired.
If property is secured from a property owner who owns a service line that requires adjustment, the cost of the adjustment and any compensation due the property owner will be made during the construction of the project. The method of adjustment is to be handled as follows:
Service line adjustments are included in our roadway contracts. Bid items are provided for the different types of anticipated adjustments. If the property owner elects to have the Commissions' contractor do the work, the portion of cost of adjustment on the new property acquired is provided by the Commission and no further obligation to the owner is necessary. Construction personnel will compute the cost for the adjustment that was on existing Commission owned property and the property owner will be billed for that part only. If the service line adjustment is done by the property owner's plumber and property is secured for the project, the property owner will be compensated for the actual cost of adjustment on the new property acquired. The property owner will not be compensated for more than the cost determined by the amount based on the roadway contractor's bid items.
236.7.2.23 Condemnation of Temporary Driveway Connection Easements
Parcels are not generally condemned when the only acquisition is for a temporary easement for the purpose of reconnecting a driveway. If the owner is not agreeable to accept the offer or settlement, and district design determines the driveway can be constructed on existing Commission owned property, the easement should be removed from the plans, a corrected plan sheet sent to the owner and the parcel voided. A letter accompanying the plan sheet should describe, in as much detail as possible, what the physical features of the proposed construction will be, and outline problems the design may cause the owner in their own reconnection of the driveway.
236.7.3 Administrative and Legal Settlements
236.7.3.1 Administrative Settlements
A. Purpose
Administrative settlements are made for the purpose of concluding negotiations for amounts considered reasonable, prudent and in the public interest, after reasonable efforts to negotiate agreements at the approved offers have failed.
Administrative settlements are not to be used for the purpose of correcting errors or omissions in an appraisal. Correcting the appraisal and making a revised offer is the method used to correct such errors and omissions.
B. Definition
An administrative settlement is any settlement authorized by the district right of way manager for a monetary consideration that differs from the approved estimate of just compensation. All settlements above the approved just compensation require written justification (Form 7-3.3.1).
- 1. Administrative Settlement in Negotiations and Mediation
- Negotiation and mediation administrative settlements are those made by right of way personnel, prior to filing of a condemnation commissioners' award with the circuit court.
- Reduction of approved salvage value is considered an administrative settlement. Settlements made in the mediation process are considered administrative settlements. Homestead and heritage payments are also considered administrative settlements. All administrative settlements require documentation in the tract file (Form 7-3.3.1).
- It is important that district right of way and regional counsel concur in settlements made during the condemnation process. Regional counsel should be advised of all settlements attempted or concluded after a project has been turned over to counsel for condemnation, so that a consensus is reached for the settlement, and that a motion to dismiss the parcel from the petition can be filed.
- 2. Legal Administrative Settlement
- Legal administrative settlements are those made by regional counsel personnel after the condemnation commissioners have reported their award to the circuit court and before exceptions are filed. Settlements after exceptions are filed are referred to as Stipulated Settlements (approved by the circuit court) and are referred to by counsel merely as "settlements".
- All settlements by regional counsel require the concurrence of right of way.
- Regional counsel may approve settlements less than $250,000 with the concurrence of the district right of way manager.
- Settlements less than $250,000, in which the district right of way manager does not concur must be approved by the Assistant Chief Counsel - Litigation and the Asst. to the State Design Engineer - Right of Way.
- The Assistant Chief Counsel - Litigation and the Asst. to the State Design Engineer - Right of Way must approve settlements greater than $250,000.
236.7.3.2 Administrative Settlements Considerations
After a diligent effort has been made to consummate settlements for the approved amounts of just compensation, the district right of way manager should review each parcel not acquired by negotiation and determine whether to make administrative settlements, pursue mediation, or acquire by condemnation.
The district right of way manager should review all pertinent information relevant to consideration of a settlement, such as:
- Approved appraisal reflects current market conditions
- Consideration in the appraisal of subjective elements of damage
- Other appraisals of subject
- The Negotiator's Report regarding damage factors claimed by the owner
- Counteroffers made by the owner
- The range of probable testimony
- Recent jury verdicts for similar type properties
- Estimated court costs
- Opinion of legal counsel regarding probable result of proceeding with condemnation.
Note: Administrative settlements are not to be used to correct errors or omissions of the appraisal. Correcting the appraisal and making a revised offer is the method used to correct such errors and omissions.
Revised Offer Based on Revised Appraisal
If it appears that the approved amount of just compensation does not reflect current market conditions or does not consider all compensable elements of just compensation, an updated appraisal should be secured. A revised offer letter and revised valuation shall be promptly given to the owner. This is not considered an administrative settlement.
236.7.3.3 Making Administrative Settlements
Having determined that it is in the public interest to make an administrative settlement, the district right of way manager establishes an equitable amount for the settlement. The amount and other terms of the settlement are then relayed to the owner either verbally or in writing. Should the owner accept the proposal, the necessary conveyance documents are executed, showing the final settlement amount.
Administrative Settlement Justification Letter
At the conclusion of an administrative settlement, the district shall prepare a letter of justification (Form 7-3.3.1) that sets out the terms of the settlement and the factors upon which it was based. A copy of this letter is to be sent to the Right of Way Section when the parcel is submitted for payroll.
Administrative settlement justification is not to be based on perceived inadequacies of the appraisal process. If the appraisal, on which the offer was based, is subsequently believed to be deficient, a new or revised appraisal should be secured.
236.7.3.4 Approving and Processing Legal Settlements (Stipulated Settlements)
As previously stated, stipulated settlements are those made after a commissioners' award has been filed with the circuit court. Settlements less than $250,000 will be submitted to the circuit court for approval after the concurrence of the district right of way manager. Settlements greater than $250,000, or which the district right of way manager does not concur, require the concurrence of the Asst. to the State Design Engineer - Right of Way and the Assistant Chief Counsel - Litigation.
To accomplish these settlements, regional counsel or assistant regional counsel prepares a Pre-Trial Report. The comments of the district right of way manager and the Asst. to the State Design Engineer - Right of Way should be considered by the Assistant Chief Counsel - Litigation, prior to final approval of the settlement.
236.7.4 Escrow Agreements, Deeds of Release and Purchase Agreement
236.7.4.1 Purpose
This information establishes MoDOT’s procedures for using escrow agreements, subordination of mortgage liens, deeds of release and purchase agreements in the acquisition of land and easements.
The negotiator should know what documents will be required for closing depending on ownership and value of the property. The checklist of items (provided in the links following), include those required documents, depends on whether MoDOT or a title company will be conducting the closing.
236.7.4.2 Escrow Agreements
An Escrow Agreement (fee owner) (Form 7-4.2A (CCO RW8)) or a Tenant Escrow Agreement (Form 7-4.2B (CCO RW10)), is used when an escrow agent is used (see EPG 236.4.4.6). (Forms RW8 and RW10 are accessible in eAgreements.)
The use of an Escrow Agreement is not required when obtaining property or property rights from another government agency.
When the acquisition involves only a temporary easement, it is not required to escrow the payment unless circumstances warrant it.
A. Escrow Agreement (Fee Owner)
- 1. When the Escrow Agreement is used
- The escrow agreement shall be used to establish possession of occupied buildings, removal of buildings or equipment if retained by the owner, and provide for payment of taxes, liens, mortgages, or other encumbrances.
- 2. Contaminated Property Provision
- Certain required paragraphs of the escrow agreement provide for owner disclosure of contamination, testing for contamination and termination of the acquisition under certain conditions of contamination. If there is an indication that the property being acquired is contaminated and is to be tested, the check for the real estate payment should not be delivered to the escrow agent until it is determined that the department will proceed with the acquisition, without further attention to the contamination.
B. Tenant Escrow Agreement
- 1. When Tenant Escrow Agreement is used
- The Tenant Escrow Agreement (Form 7-4.2B, RW10) (Form RW10 is accessible in eAgreements) is used when necessary to ensure removal or possession of tenant-owned improvements or equipment retained by the tenant owner.
- The Tenant Escrow Agreement may be used to acquire tenant interests prior to conveyance or condemnation of fee holder interests, only if a Release of Structures and Leasehold (Form 7-2.7D (CCO RW15)) (Form RW15 is accessible in eAgreements), is executed by the fee owner and attached to the Tenant Escrow Agreement.
- 2. Phrases for Release of Structures and Leasehold if Tenant Escrow Agreement is not used
- In cases where it is deemed unnecessary to use the Tenant Escrow Agreement, one of the following paragraphs, as applicable, should be included in the Release of Structures and Leasehold.
- "Party of the First Part hereby agrees to vacate and give peaceable possession of said above described property to Commission within ______ days after payment of the consideration. At the conclusion of this possession period all of the improvements being conveyed herein shall become the property of the Commission to dispose of in anyway it deems necessary."
- "Party of the First Part hereby retains the right to salvage (describe structure) and hereby agrees to remove said structure within _______ days after payment of the consideration. Commission may, after said date and without repercussion from Party of the First Part, dispose of said structure in anyway it deems necessary."
- "Party of the First Part hereby retains the right to salvage (describe structure) and hereby agrees to remove said structure by the _____ day of ________, 20___. Commission may after said date and without repercussion from Party of the First Part, dispose of said structure in anyway it deems necessary."
Requirements for the Retention of Improvements
Requirements for the Retention of Improvements (Form 7-4.2C,) must be incorporated with any Escrow Agreement or Agreement for Purchase of Real Estate. The form sets out the requirements of an owner or tenant that elects to retain improvements or equipment for removal from the acquired land.
236.7.4.3 Deed of Release and Partial Deed of Release
Obtaining Deeds of Release and Partial Deeds of Release] (Form 7-4.3, RW25) (Form RW25 is accessible in eAgreements) is the responsibility of the escrow agent. When obtaining a release from a corporation, a corporation release form is normally used. For individuals or partners, a non-corporation release form is to be used. Most title companies, banks, and other lending institutions carry appropriate forms as part of their routine business. The escrow agent is to either prepare the release for execution by the lien holder or provide the lien holder with the property description for inclusion in the release.
236.7.4.4 Agreement for Purchase of Real Estate
A. When Agreement for Purchase of Real Estate is used
The Agreement for Purchase of Real Estate, Form 7-4.4 (CCO RW7) (Form RW7 is accessible in eAgreements) is used when purchasing property or property rights and an escrow agreement is not being used as discussed in EPG 236.4.4.6 Escrow Services. As required by RSMo 141.250, the proceeds derived from the sale of any lands with a tax lien, shown by records of land trust, the land bank agency, or the city or county collector, shall be distributed to the lien holders first before any proceeds are paid to the property owner. The negotiator is required to determine whether any tax liens exist and ensure the lien holder is paid before the property owner is paid.
The use of this agreement is not required when obtaining property or property rights from another governmental agency.
The use of this agreement is not required when only temporary rights are being acquired via a temporary easement unless circumstances warrant it.
B. Contaminated Property Provision
If there is an indication that the property being acquired is contaminated and is to be tested, the check for payment of the real estate should not be delivered to the owner until such time that it has been determined that the department will proceed with the acquisition.
236.7.4.5 Subordination of Mortgage Liens
The Partial Deed of Release, RW25, is the most commonly used, and preferred, document when obtaining a partial acquisition from a mortgaged property.
Please note that this document serves as a partial release of a mortgage but merely subordinate the lender’s interest in the acquired property to the rights of the Commission. This document is usually signed prior to payrolling the acquisition and then held in escrow along with the conveyance documents until payment is made to the escrow agent.
236.7.5 Railroad, State and Federal Acquisitions
236.7.5.1 Purpose
This information establishes MoDOT’s procedures for acquiring railroad land and railroad right of way, federal land and land owned by the State of Missouri.
236.7.5.2 Railroads
A. General
The acquisition of land owned by railroad companies is a team responsibility of the COROW, district right of way manager, and the Multimodal Operations Division (for additional information see EPG 643.4 Railroads).
Plans approved for acquisition purposes will indicate a separate parcel number for the operating railroad right of way and to each parcel of non-operating railroad property owned by a railroad.
District right of way is responsible for compiling the acquisition documents and COROW is responsible for negotiating all railroad right of way.
The Railroad Projects Manager is responsible for ensuring all communication regarding the acquisition of railroad right of way includes the COROW staff. The RRPM will ensure the Construction and Maintenance Agreement is simultaneously obtained from the affected railroad entity during negotiations.
B. Acquisition Procedures - Railroad Land
The Multimodal Operations Division will notify COROW of railroad projects. The COROW will:
- Obtain title information for each parcel. The conveyance of the property to the railroad is sufficient unless the land involved is a recent purchase.
- Appraise each parcel in accordance with current appraisal procedures.
- Prepare a deed with metes and bounds description. A Warranty Deed (Form 4-7.1A (CCO RW3)) or Quit Claim Deed (Form 4-7.2 (CCO RW2)) is desirable and have been accepted by railroads in some situations, or use an Easement for Highway Purposes, (Form 4-7.5 (CCO RW23)). (Forms RW2, RW3 and RW23 are accessible in eAgreements.)
C. Controlled Access from Railroads and Abutting Owners
When a proposed controlled access boundary line intersects or coincides with a railroad right of way line, all easements should include a controlled access clause for access rights from the railroad and adjoining owners of underlying rights.
Also, when the proposed controlled access boundary line and the railroad right of way line coincide, it is necessary to acquire abutters' rights of direct access from owners of land and property rights adjoining the opposite side of the railroad right of way.
D. Acquiring Underlying Fee in Railroad Land and Right of Way
It is advisable to acquire the underlying fee rights of current adjoining successors in title, when acquiring railroad land.
When a proposed highway boundary line crosses or intersects the right of way of an operating railroad, it may be necessary to acquire the underlying fee within the limits of the railroad right of way from adjacent owners who have reversionary rights. It is the discretion of the district right of way manager and COROW as to whether or not the underlying fee should be acquired. The necessity increases, as the likelihood of future railroad abandonment increases.
E. Condemnation of Railroads
The Railroad Projects Manager is to be notified of the anticipated date of condemnation when the COROW is acquiring railroad property.
District right of way will be responsible for including in condemnation both operating and non-operating railroad property that are not acquired by negotiation. Prior to preparation of a condemnation petition, determine the status of negotiations and a recommendation to include or exclude railroad property in condemnation. Railroad property is not to be included in the condemnation petition unless the Multimodal Operations Division has received proper authorization from the Department of Economic Development, Division of Motor Carrier, and Railroad Safety.
236.7.5.3 Acquisition from Federal Agencies
When land or property rights are to be acquired from the United States Army, Air Force, Navy, Veterans Administration, or the Bureau of Indian Affairs, district right of way is authorized to negotiate directly with the agency. For acquisitions from all other federal agencies, application must be made through the Federal Highway Administration. District right of way is to prepare all required documents and transmit them to the Right of Way Section for handling with Federal Highway Administration.
236.7.5.4 Acquisition from State of Missouri Agencies
A. Acquisition from Conservation Commission and the University of Missouri
Other than the MHTC, the Conservation Commission and the University of Missouri are the only Missouri state agencies that have authority to convey real property. When the MHTC acquires land or property rights from one of these two agencies, district right of way shall negotiate directly with the agency.
The curators of the University of Missouri are vested with the power to convey property owned by the University in § 172.020, RSMo. This section reads, in part, “The Curators of the University of Missouri…shall have perpetual…power…to take, purchase and to sell, convey and otherwise dispose of lands and chattels…”. This is consistent with § 37.005.9, RSMo which specifically excepts property owned by the university from other state property which vests in the governor and requires authorization from the general assembly before it can be conveyed.
It is not as clear whether the Department of Conversation/Conservation Commission has the power to convey the property it owns. However, Art. IV, § 40(a) of the Missouri Constitution gives the Conservation Commission the control, power and management over all property owned, acquired or used for conservation purposes. While this constitutional provision does not specifically state that the Conservation Commission has the power to convey property, a reasonable interpretation of this section, read in conjunction with § 37.005.9, RSMo., is that the Conservation Commission has the power to convey property.
B. Acquisition from All Other State Agencies
State agencies, other than those identified above, are required, by statute, to obtain authority to convey real property by an act of the General Assembly. The Governor may execute conveyances of easement rights only without authorizing legislation.
- 1. Land Acquisition
- For all agencies other than those identified above state statute provides for the conveyance of fee simple interest in real property, by a specific act of the General Assembly that will be arranged by the Right of Way Section. The legislative act authorizes the Governor to execute the conveyance document, after it has been approved as to form by the Attorney General’s office.
- 2. Easement Acquisition
- When only easement rights are to be acquired, the statute permits the Governor to convey an easement without legislative action, after the document is approved as to form by the Attorney General's Office.
- The document CCO RW24 may be used for these acquisitions, with a suggested heading change to EASEMENT(S) ON STATE PROPERTY FOR HIGHWAY PURPOSES. (Form RW24 is accessible in eAgreements.) This heading change does not require approval by Chief Counsel Office.
- 3. Acquisition Procedure
- District right of way shall:
- contact the local agency representative
- explain the acquisition
- obtain permission to inspect
- appraise the property or secure donation
- review and approve Just Compensation
- prepare offer letter
- prepare Quit Claim Deed
- Forward appraisal, offer letter, Quitclaim Deed, and plan sheets to the Right of Way Section. The Right of Way Section will:
- negotiate directly with the agency
- secure executed deed
- process payroll
- deliver check to the agency
- transmit executed deed to the district for recording
- transmit to district negotiator’s report and contact log
- prepare and transmit to district an administrative settlement letter, if necessary
236.7.6 Acquisitions of Maintenance Sites and Other Capital Improvement Sites
236.7.6.1 Purpose
This information describes MoDOT’s procedures for acquiring maintenance sitesand other capital improvement sites.
236.7.6.2 Site Selection and Approval
Site selection, including environmental studies of proposed sites, is the responsibility of the district subject to approval of the General Services Director.
Once the location for a new site is chosen or the decision is made to expand a facility, the General Services Division will request district right of way to determine the market value of the property.
All property to be acquired for capital improvement purposes shall be appraised in accordance with EPG 236.6 Appraisal and Appraisal Review. In those instances where only a portion of the total property is to be acquired, appraisers shall determine if the acquisition will damage the remaining property. If in their opinion the remaining property is damaged, the appraisers shall prepare a before and after appraisal of the property setting forth such damages. If in their opinion there is no damage to the remainder, appraisers are to make a statement to that effect in the appraisal report and appraise the part to be acquired as a total tract.
Upon completion of the appraisal, it is to be reviewed in the district in accordance with EPG 236.3. A copy of the approved appraisal shall be forwarded by the district to the General Services Division for funding allocations.
236.7.6.3 Acquisition Procedure
Upon receipt of concurrence, the General Services Division will advise district right of way to initiate negotiations for acquisition of the property. A letter of offer on capital improvement facilities (Form 7.6.3), is to be used in making offers to property owners. District right of way should follow acquisition procedures outlined in the areas of payrolling, abstract or title insurance, and the use of Escrow Agents.
All capital improvement sites and additions shall be acquired in fee simple title. The deed for conveyance shall be based on an accurate survey of the property. A professional land surveyor shall complete the survey.
Negotiations for all new or additions to capital improvement facilities shall be based on approximate boundaries. If the owner is agreeable to selling the property for the approved amount, said survey will be made for preparation of the deed.
Appropriate efforts to acquire the property for the approved amount should be made; however, if the owner refuses the offer but through either a counteroffer or other means it is determined that the property can be purchased for an amount above the approved offer, so advise the General Services Division with a recommendation. The General Services Division will advise the district whether or not to proceed at the higher price.
Upon successful negotiations for the capital improvement site or addition, the payroll shall be completed in the same manner as other payrolls for land acquisitions and submitted to the Right of Way Section. Upon receipt of the check by district right of way, the deed and survey plat will be recorded. Copies of the recorded deed and survey shall be submitted to the General Services Division and the State Maintenance Engineer.
Condemnation proceedings shall not be initiated for a capital improvement location unless specifically instructed to do so by the Right of Way Section.
The cost of appraisals, survey expenses, title work and other miscellaneous right of way items as well as the cost of the site itself shall be charged to the appropriate project number established by the General Services Division.
236.7.7 1099 Reporting of Acquisitions
236.7.7.1 Purpose
This information establishes MoDOT’s guidelines and procedures for reporting the acquisition of real estate or real property rights to the Internal Revenue Service (IRS).
236.7.7.2 1099 Reporting Procedure
A. Transactions to be Reported
The Commission is responsible for reporting the following real estate acquisitions to the IRS:
- Real property and or permanent right in excess of $600 will be reported on a 1099-S.
- Temporary easements if the easement is to last 30 years or more and are paid over $600 will be reported on a 1099 MISC and handled by OA. Damages to remainders for real property and/or permanent rights will be reported on a 1099-S.
- Damages related to the temporary easement will be reported on a 1099-MISC and will be handled by OA.
- Damages included with a temporary easement that consist of money provided to a property owner that will not be expended on the property over $600 (for example, removing an entrance/driveway) will be handled by OA and reported on a 1099-MISC.
- Administrative settlements included with a temporary easement will be handled by OA and reported on a 1099-MISC.
B. Transactions Not Reported
The following are exceptions to the requirements for reporting acquisitions to the IRS:
- Purchases from corporations and governmental agencies.
- If the payment is being made to an escrow agent, the agent handles the 1099 reporting.
- Cost to cure (damages) included with a temporary easement that consists of money being provided to a property owner to expend on property, for example, trees and fencing.
C. Determining Year of Reporting
Under IRS rules an acquisition has to be reported in the year the transaction is closed. For purchases this is the date the check is received by the escrow agent or the property owner. For condemned property it is the date the Commissioners’ award is deposited with the court. The withdrawal of the award from the court is not considered in determining the date of closing nor the need to report the acquisition.
D. Reporting More Than One Owner
Transactions should be entered in RWPA shortly after they are closed or condemned. In the case of condemned property it will be necessary to base the report on the award. When more than one property owner (other than husband and wife or partnerships) is involved in receiving proceeds from the acquisition, IRS regulations require that an allocation of the gross proceeds be requested by MoDOT. The request must be made at or before the time of closing or at the time the Commissioners’ award is paid into court. This request should be made by certified mail with a copy to each taxpayer.
If the distribution cannot be determined or if an award is not drawn down from court, it will be necessary to report the entire amount to the IRS for each individual taxpayer. Those individuals whose property is acquired by negotiation yet still refuse to provide a distribution of funds should also receive a request by certified mail. The request should advise taxpayers that if an allocation of funds is not provided the entire amount will be reported as if paid to each taxpayer.
E – RWPA System Requirements for 1099s
All data must be entered on the following screens for a 1099 to be processed: Location Description screen: Section, Township and Range.
1099 screen: Fee Holder/Tenants info: SSN/Tax ID;
- 1099 data – Type (interest or “s” sale), Date Closed, and Gross Proceeds.
236.7.7.3 Taxpayer Identification Numbers
It is required that MoDOT request a taxpayer identification number (TIN) from all taxpayers at or before the time of closing. A husband and wife are treated as one taxpayer and only one TIN needs to be supplied. Partnerships and trusts should have a TIN that is to be used instead of social security numbers of the individual partners or the beneficiaries of a trust.
Under IRS regulations, any person whose TIN is requested must furnish such TIN and certify that the TIN is correct. The solicitation shall be made by providing a written statement to the taxpayer that they are required by law to furnish a correct TIN, and that they may be subject to civil or criminal penalties for failing to furnish a correct TIN.
The procedures described in EPG 236.7.2 shall be followed in soliciting TINs from taxpayers during negotiations. The paragraph in the offer letter pertaining to TINs will satisfy the above requirement. A Vendor Input Form or W9, whichever is applicable, can be used with the request.
When dealing with a representative of the owner(s), it is permissible to request that the representative obtain the TIN from the taxpayer(s); however, if they fail to supply it, a request must be sent to the taxpayer(s) by certified mail.
A completed Form 7-7.3 will be retained in the parcel file and provided to the escrow agent. A completed Vendor Input Form is to be submitted to the Office of Administration.
A. Instructions for Preparing Request for Taxpayer Identification Number and Request for Allocation of Gross Proceeds
The Request for Allocation of Gross Proceeds (Form 7-7.3) and Request for Taxpayer Identification Number and Allocation of Gross Proceeds - Sample Letter (Form 7-7.3A), has been prepared as a style sheet. Five fields (County, Route, Job, Parcel and Total Amount to be Allocated) are to be completed by district right of way before giving the form to the property owner.
A sample letter (Form 7-7.3A) to accompany the request form is available.
236.7.7.4 Methods for Reporting to the IRS
Reporting of real estate transactions to the IRS will be done by one of the following four methods:
- If the property is purchased and the transaction is closed by an escrow agent, the escrow agent is to handle the reporting to the IRS. The agreement for title and escrow services as described in EPG 236.4.4.6 Escrow Services provides for this requirement. If a bank or other source is used as an escrow agent, the letter of understanding with the escrow agent should spell out this duty along with the other duties.
- If the property is purchased and the transaction is not closed by an escrow agent, district right of way is responsible for creating a 1099-S in the RWPA application. The “Property Transfer Settlement” field shall be filled in with “Yes” if part of the consideration for a reportable acquisition transaction consisted of realty. The most current address shall be verified and used on the form.
- If the property is condemned, it should be determined if the County Clerk is reporting the transaction to the IRS. If they are making the report, MoDOT will not duplicate it. If the County Clerk is not reporting the transactions, district right of way is responsible for creating a 1099-S and/or 1099-I in the RWPA application.
- If the property purchased is a temporary easement, OA will handle reporting the 1099-MISC.
236.7.7.5 Corrected 1099-S's
If a trial or legal settlement occurs during the same tax year that the Commissioners’ Award was reported, district right of way shall correct the 1099-S in the Right of Way Parcel Acquisition application to show the new amount. The 1099-S shall be corrected if the final amount is either more or less than the amount previously reported.
236.7.7.6 Reporting on Condemned Acquisitions
A. Reporting Jury Verdicts or Settlements in Subsequent Tax Years
If a jury verdict or settlement occurs in a subsequent tax year and the amount of the verdict or settlement is greater than the award, a normal 1099-S for the difference between the verdict or settlement (not including interest) and the previously reported amount shall be created in the Right of Way Parcel Acquisition application by district right of way.
If a jury verdict or settlement in a subsequent year is for an amount less than the award, no reporting is necessary.
If the jury verdict or settlement is on a parcel that was condemned in a year in which the department was not required to report transactions, a 1099-S shall be submitted for the difference in the verdict or settlement (not including interest) and the original award. Do not include the original award in this submission, even though MoDOT never reported the original award.
B. Reporting Payment of Interest
When a jury verdict or a legal settlement results in $600 or more of interest being due the property owner, the payment of interest is to be reported to the Internal Revenue Service. In these cases, district right of way shall create a 1099-INT.
When more than one property owner (other than husband and wife or partnerships) is involved in receiving proceeds from the acquisition, the reporting of interest is to be broken down by the same ratio as the allocation of the gross proceeds among the taxpayers.
236.7.8 Contract Negotiation
236.7.8.1 Application for Employment as Contract Negotiator
All contracts for negotiation services shall comply with statutory, Missouri Department of Transportation (MODOT) and E-Verify requirements when applicable. Please refer to EPG 236.3.11 Contracting with MoDOT and E-Verify Requirements for more information.
Right of Way negotiators employed under agreement by the Missouri Highways and Transportation Commission (MHTC) must enjoy a good professional reputation and be able to provide evidence of significant experience in Federal-Aid projects and negotiating for eminent domain acquisitions. Additional experience obtained through classes relating to the uniform act and negotiations is recommended as outlined below.
All fee negotiators who desire to work for MHTC on a contract basis are required to complete the MoDOT ROW Negotiator training and submit an Application for Employment as a Contract Negotiator (Form 7.8.1), to a district right of way office. When the application is received at the district office, a member of the right of way department shall conduct an investigation to verify the qualifications of the applicant. This investigation shall be to the extent necessary to determine the abilities of the applicant and the applicant's general reputation within the profession. All clients shown on the application may be contacted by telephone. All applicants must have recommendations by at least two clients.
After the investigation is completed and district right of way department is satisfied with the applicant's qualifications, the district shall transmit to Central Office Right of Way the recommendation together with one copy of the application and any other necessary information for the approval process. Central Office Right of Way will review the recommendation and supporting information to verify the applicant's qualifications and will advise the district office, in writing, of the approval or disapproval of the applicant.
Duration of Approval of Fee Negotiators on the Roster of Approved Negotiators
Duration of approval on the Roster of Approved Fee Negotiators is 5 years. The negotiator will be required to complete the MoDOT ROW Negotiator training and submit their renewal application by July 1st, of the expiration year listed on the roster. If a renewal application is not received by July 1st, the appraiser will be removed from the roster. If the negotiator fails to comply with the terms of the Negotiator Contract Agreement, or the progress or quality of the work is unsatisfactory, MoDOT reserves the right to remove the negotiator from the approved roster. A renewal application will be required if the applicant desires to remain on the list and capture updated information such as address, phone numbers, email addresses and areas of the state the applicant is interested in performing work. Renewal dates are contained in the Roster of Approved MoDOT Contract Negotiators.
236.7.8.2 Roster of Approved MoDOT Contract Negotiators
The Right of Way Section will maintain a Roster of Approved MoDOT Contract Negotiators, listing all approved contract negotiators. The roster indicates the districts in which the individual is available to work, however, approved negotiators may work in any district of the state.
236.7.8.3 Preliminary Contract Negotiation Fee Estimate
Although not required, it may be advisable in some circumstances to prepare a preliminary contract negotiation fee estimate. This will document that consideration was given to the negotiation problems that are anticipated and provide a basis for evaluating the reasonableness of proposed fees.
236.7.8.4 Proposal for Contract Negotiations
The availability of qualified contract negotiators varies from one location to another and/or from one time period to another, depending upon current economic conditions. Departmental guidelines provides for both the solicitation of competitive proposals and for non-competitive contracting. The availability of qualified contract negotiators and project time constraints may determine the bid process that will be followed.
Every effort shall be made to select the most qualified negotiators available for the particular assignments involved. Consideration should be given to anticipated negotiation problems, the talents and skills of the prospective negotiators, past performance, and present commitments. The negotiator must have experience working on federal-aid projects and provide a list of those projects within the application. The district shall contact by letter, telephone, or in person each of the selected negotiators to determine their interest in submitting proposals for the required work.
Each prospective negotiator must familiarize themselves with all aspects of the proposed negotiations assignment. A member of the district right of way staff shall be available to accompany prospective negotiators during a field review of each parcel if requested, in order to acquaint them with project plans, rights being acquired, and any unique problems that may be encountered.
A proposal packet shall be prepared for each selected negotiator, whether distributing competitive proposals or non-competitive proposals. Each proposal packet should contain the following:
- Proposal for Contract Negotiations (Form 7-8.4 (CCO RW33) (Form RW33 is accessible in eAgreements), with parcel number, owner, and realty appraisal format completed on the price page).
- Blank copy of Negotiator Services Agreement (Form 7-8.5 (CCO RW34)). (Form RW34 is accessible in eAgreements)
- Right of Way Plans.
- Copies of appropriate negotiations forms and form letters.
- Envelope to district office with "Proposed Negotiation Fees - Do Not Open," if requesting competitive proposals.
A. Competitive Proposals for Contract Negotiations
When the competitive proposal process for contracting negotiations is used, the district shall make a reasonable effort to secure proposals from those approved negotiators who have demonstrated expertise to accomplish the proposed negotiation assignments. The request for proposals shall be in writing and is to be mailed simultaneously to negotiators on the "approved" list.
It should be noted that negotiation agreements are to be awarded to the lowest and best bid. The term "lowest" pertains strictly to the dollar amount of the proposal. The term "best" takes into consideration the issue of timeliness, or delivery date, the comparative level of experience of the bidders, and also the past records of individuals with respect to quality of work product and adherence to agreement requirements and deadlines. In other words, though important, mere submission of the lowest cost proposal will not, in and of itself, assure that bidder of being awarded a particular agreement.
An envelope directed to District Office shall be provided with a notation prominently displayed "Proposed Negotiation Fees - Do Not Open." A proposal packet shall be provided to each negotiator. Every negotiator should be warned not to add or delete any terms or conditions or amend the proposal in any way. Altered or amended proposals will be rejected at the time of opening.
Electronic submissions or faxed submissions of proposals will not be accepted because confidentiality cannot be maintained.
A designated district staff member shall retain all competitive proposals received until time of opening.
- 1. Opening of Proposals
- District staff members shall open all proposals at the prescribed time. Personnel supervising the opening shall publicly announce to all in attendance the amounts recited in each proposal.
- 2. Selection of Successful Proposal
- The lowest and best proposal is to be selected and the district will prepare a Negotiation Services Agreement (CCO RW34) for execution by the successful bidder. Agreements must contain the same provisions as the proposal.
B. Non-Competitive Proposals for Contract Negotiations
When staff workload or project completion considerations warrant, negotiations agreements may be awarded without competitive proposals, the district may proceed as follows:
District shall select negotiators from the current Roster of Approved MoDOT Contract Negotiators. Every effort shall be made to select the most qualified negotiator available for the particular job. Consideration should be given to anticipated negotiation problems, negotiator’s experience, negotiator's past performance, pending assignments, etc. District personnel determine the selected negotiator’s availability to complete the work within a specified time.
After the negotiator has been made aware of all facts regarding the prospective negotiations assignment, the district shall request a Proposal for Contract Negotiations (Form 7-8.4, RW33) (Form RW33 is accessible in eAgreements), setting forth a fee for each parcel. Since competitive proposals are not involved, the Competitive Proposal paragraph may be deleted or marked "not applicable." The proposal must be dated, signed, and submitted to the district office by the prospective negotiator.
Should it be determined that the proposed fees appear excessive, the district right of way manager or a designee shall negotiate with the negotiator in an effort to achieve acceptable fees. In the event negotiations fail to produce acceptable fees, the district has the option to negotiate with another contractor or initiate the competitive bid process. Once acceptable fees are agreed upon, the district shall secure a Negotiator Services Agreement (CCO RW34).
236.7.8.5 Negotiator Services Agreement
All Fee Negotiators performing negotiation work for the Missouri Highways and Transportation Commission shall do so by a fully completed and executed Negotiator Services Agreement (Form 7-8.5 (CCO RW34)) (Form RW34 is accessible in eAgreements). Negotiator Services Agreements with individuals or companies shall designate the individual(s) who shall perform the negotiation services. An officer shall execute all agreements with companies. Each agreement shall include a copy of the negotiator’s proposal (Form 7-8.4, RW33). (Form RW33 is accessible in eAgreements.)
Three copies of the Negotiator Services Agreement shall be executed by appropriate MoDOT staff in accordance with the Commission’s Execution of Documents Policy.
A. Distribution of Fully Executed Negotiations Agreements
One fully executed copy shall be returned to the contractor, one copy shall be retained by district right of way and one shall be submitted to the Controller’s Division.
B. Notice to Proceed
The agreement requires a written notice to proceed, with which the negotiator should be provided a current set of highway plans and other data necessary to accomplish the assignment.
236.7.8.6 Supplemental Negotiator Services Agreements
Subsequent to the execution of the initial agreement, it sometimes becomes necessary, due to plan changes or other considerations, to request additional negotiations services. If such services are required, they are to be secured by processing a supplemental negotiations agreement.
Supplemental Negotiator Services Agreement (Form 7-8.6, (CCO RW35)) (Form RW35 is accessible in eAgreements) is designed to minimize administrative efforts when it becomes necessary to add parcels to the original agreement, or change the scope of the required services.
The Supplemental Negotiator Services Agreement refers to specifications as recited in original agreement, so it becomes imperative that such requirements and specifications are effective at the date "new" parcels or required services are added to the original contract. New parcels shall be construed to mean tracts not previously included or where the plan or ownership revisions are so acute as to require additional services. Also a calendar period or time frame in which the work is to be completed must be specified.
Three copies of the Supplemental Negotiator Services Agreementshall be executed in accordance with the Commission’s Execution of Documents Policy. One fully executed copy shall be returned to the contractor, one copy shall be retained by district right of way and one shall be submitted to the Controller’s Division.
236.7.8.7 Contract Negotiator Performance Evaluation
The last paragraph of Proposal for Contract Negotiation (Form 7-8.4, RW33) (Form RW33 is accessible in eAgreements), advises contractors that their overall performance will be carefully evaluated and that failure to perform at an acceptable level can result in their removal from MoDOT’s Roster of Approved MoDOT Contract Negotiators.
Properly used, the Performance Evaluation can be of considerable value to MoDOT in effectively managing contract negotiations work.
Notification to Contract Negotiator of Removal from Roster of Approved MoDOT Contract Negotiators
In the event the fee negotiator is found to have unsatisfactory performance or unsatisfactory work product outlined in scope of services, MoDOT has the right to remove the fee appraiser from the roster.
236.7.9 Special Benefit Acquisitions
236.7.9.1 Purpose
This information establishes MoDOT’s procedures for partial acquisitions from properties that result in Special Benefits to the remainder.
236.7.9.2 Special Benefit Acquisitions
Special Benefits are those benefits accruing to the land adjacent to the public improvements that do not accrue to the public at large. When an appraisal reveals an enhancement in the value of an owner's remaining property the enhanced value may merely be reflected in a lowered estimate of Just Compensation, or it may result in a zero indication of Just Compensation. Both situations are to be considered Special Benefit cases.
Special benefits reflected in an appraisal must be supported with concurrence from district counsel and written documentation attached to the appraisal.
Dual compensation amounts will be offered to owners of residentially improved properties, to reflect the acquisition area with special benefits to the remainder, and the acquisition of the entire property at its before value.
Dual offers for residentially improved properties are implemented at the discretion of the Asst. to the State Design Engineer - Right of Way. It will be solely the discretion of the Asst. to the State Design Engineer - Right of Way to apply this policy to other than residential property. The size and value of a remainder may dictate the MHTC’s ability to acquire entire large, higher valued properties.
A. Dual Offers for Special Benefits on Residentially Improved Properties
Dual offers are to be extended at the initiation of negotiations for properties where residential improvements are affected.
No single-family dwelling that has contributory value, whether occupied or unoccupied at the effective date of appraisal or date of acquisition, shall be compensated at less than its contributory value due to the assessment of special benefits. Further, an occupied dwelling must be compensated for on the basis of its value as a residential use.
First Offer
If the acquired dwelling is occupied or unoccupied, and contributes to the before value, the first offer would reflect at least the value of the dwelling and supporting land and improvements.
If the acquired dwelling is unoccupied and has no contributory value before the acquisition, the first offer will be the reduced or zero offer.
Second Offer
In every case, the second offer will reflect the total before property value, based on its highest and best use before the acquisition.
B. Acquisition of Residential Dwelling With Contributory Value – Whether Occupied or Unoccupied
(Occurs when the highest and best use before acquisition is residential, and the highest and best use after acquisition is a higher, more valuable use.)
If there are special benefits to a remainder, and an occupied or unoccupied dwelling which has value in the before situation is to be acquired, a dual offer will be prepared and extended to the owner at the initiation of negotiations. Offers to acquire an occupied or unoccupied dwelling will include compensation based on the contributory value of the dwelling, residential outbuildings, and supporting land, plus any additional contributory value of other land area in the acquisition, which will have been set out in the appraisal review. The second offer will be the entire before value as set out in the appraisal review.
C. Acquisition of an Occupied Dwelling With No Contributory Value to the Current Highest and Best Use
(Occurs when the highest and best use of the land, before the acquisition, is greater than residential.).
If there are special benefits to a remainder, and an occupied dwelling which has no contributory value in the before situation is to be acquired, a dual offer will be prepared and extended to the owner at the initiation of negotiations. The first offer will be at least the value of the dwelling, residential outbuildings, and supporting land, approved in the appraisal review. The second offer will be the entire before value as set out in the appraisal review.
D. Acquisition of Unoccupied Dwelling That Has No Contributory Value to the Current Highest and Best Use
If there are special benefits to a remainder and an unoccupied dwelling, which has no contributory value in the before situation is to be acquired, the property shall be appraised for its highest and best use in both the before and after situation with no special consideration being given the improvements.
No dual offer would be necessary in this situation.