236.5 Property Management: Difference between revisions

The following requirements are a consolidation of Commission policies, Right of Way Division general policy direction and applicable sections of the Code of Federal Regulations.

236.5.1.2 Federal Highway Administration Approval, Disposal and Leasing of Realty

Federal Regulations set forth various requirements for approval in the disposal or leasing of realty. Securing this approval is the responsibility of the Right of Way Division and will be accomplished without direct involvement by the district.

If, upon receiving the Federal Highway Administration's concurrence, additional conditions are set out therein, the district will be advised of the needed change. Also, if for some reason there is Division approval to deviate from the department's policy as set forth in this article, or conditions of the disposal or lease are revised during negotiation, Federal Highway Administration approval will be secured prior to final approval and execution of the appropriate instruments by the Missouri Highway and Transportation Commission or its designated representative.

236.5.1.3 MoDOT Property Inventory Record

All property owned by the Commission, other than highway rights of way, shall be identified on a MoDOT Property Inventory Record (note instructions) (see the Commission Minutes of August 9, 1996). This includes the following site categories: central office, district office, RE office, maintenance, stockpile, excess, beneath a structure, roadside park, leased area due to encroachment, remnant, pre-construction right of way, change in route status, highway patrol, weigh station, rest area, radio tower, tourist information center, etc. Upon completion, a copy of the form shall be retained in the district with all pertinent backup material and a copy shall be forwarded to the Right of Way Division. This information will be entered into a computer database, accessible to the districts.

If the property is enlarged, sold, leased, absorbed into right of way, etc., this additional information shall be added to the form in the district and a copy forwarded to the Right of Way Division along with the appropriate documents; i.e., payroll information, a deed conveying the property, a lease of premises agreement, etc. The Right of Way Division shall be made aware of any change to a particular property.

236.5.1.4 Employees Purchasing Excess Property from the Commission

Should an employee of the department, as an adjacent owner, request to purchase any department-owned excess property, the district Right of Way Management Committee shall provide all facts to the Director who shall review the request for approval as stated in MoDOT's Personnel Policy Manual Policy or Procedure Number 2700 (Conflict of Interest).

Employees shall have the right to bid on any excess property that is being sold by public sale except those employees with prior knowledge of the approved values of said excess property.

236.5.1.5 Handling of Funds Received

When district right of way receives a Receipt-Transmittal of Money Form from district controller’s office for the sale of improvements, excess property, rent, etc., they shall immediately fill in the lower half of the form with route, county, project number, excess number, reason for payment, etc., and forward the receipt and one copy back to district business & benefits support for further processing. A copy of the receipt shall be placed in the district right of way file and a copy forwarded to the Right of Way Division.

Where cash is provided, the remitter shall be given a cash receipt by the person accepting the payment and a Receipt-Transmittal of Money Form shall be filled out in full. The cash along with the original and one copy of the Receipt-Transmittal of Money form shall be taken to district business & benefits support for further processing. Also a copy of the Receipt-Transmittal of Money form shall be placed in the district right of way file and a copy shall be forwarded to the Right of Way Division.

236.5.1.6 Utility Easements Across Commission Property

At times the district receives a request from a utility company for an easement across commission-owned property other than right of way. Requests for easements of this nature shall be forwarded to the Right of Way Division along with a plan sheet from the utility company and any other pertinent information concerning the request. Commission approval of easement deeds to utility companies is not required. Easements not submitted on the standard approved form must be approved as to form by the Chief Counsel's Office before execution. All easement deeds will be executed on behalf of the Commission by the Chairman or Vice-Chairman and attested to by the Secretary.

236.5.1.7 Release of Temporary Easements and Retention Clauses

Occasionally a property owner will request that a temporary easement that is no longer in effect or retention of possession and use clause in a deed be released. This request is usually made at such time as the owner is selling the property and the easement or clause causes a cloud on the title. This release can be accomplished by one of the following, depending upon which method is acceptable to the title company handling the title work for the owner.

A letter stating that the project is complete and the easement is no longer in effect. The letter is to be signed by the district engineer.

An affidavit signed by the district engineer attesting to the completion of the project and release of the easement.

A quitclaim deed executed on behalf of the Commission by the Chairman or Vice-Chairman.

Quitclaim deeds to clear up clouds on titles created by temporary easements or retention clauses are not required to be submitted to the Commission for approval but must be submitted for execution by the Chairman or Vice-Chairman and attested to by the Secretary. Also, no processing fee is charged in these situations.

236.5.1.8 Asset Management Committee

Each district is to establish a Asset Management Committee. The district right of way manager may be the chairperson of this committee. In addition to the district right of way manager, the committee should include at least one member each from district design, planning, maintenance, traffic, construction and materials, area engineer, and an assistant or district engineer. The committee can include additional members, as the district deems appropriate. The district utilities engineer and the professional land surveyor should serve either as a member or at least an ex officio member. If the asset is classified as a capital improvement asset (i.e. maintenance site, stockpile, mixing board, etc.) inform district General Services Facilities Management and include them in the review.

The committee is to review each request not only for the excess issue, but also to ensure that any issues related to a Change in Route Status Report (CRSR) or Change in Route Marking Report (CRMR) that is tied to the excess issue is addressed at the same time.

The committee is to review each request to purchase or lease excess right of way in a timely manner and to advise district right of way to proceed in accordance with the policies set out in this article. The District Asset Management Committee will also review requests to lease Commission-owned property or to use the right of way in such a manner as to make an airspace agreement appropriate.

The committee will also review requests for entrance shifts, widening or breaks in access. Review and assistance of the committee can be particularly helpful when access-related activities necessitate appraisals and transfer of property rights by deed.

236.5.2 Uneconomic Remnant

236.5.2.1 Definition

An uneconomic remnant is any area 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 that the area has little or no value or utility to the owner.

236.5.2.2 Easement for Utility Facility in Place or Relocated into the Uneconomic Remnant Area

If an uneconomic remnant is acquired subject to any rights of a utility company or agency, then said conveyance by the Commission is subject to said rights and the type of easement with recorded book and page number should be spelled out in the conveyance deed. Sale of remnants with utility facilities relocated into the area, must be made subject to the utility as set out in 236.5.4.7.

236.5.2.3 Disposal of Uneconomic Remnants During the Period of Right of Way Negotiations

The district is authorized to negotiate for the exchange (trade) of department-owned uneconomic remnants for other property or rights needed for right of way purposes from adjoining property owners in accordance with procedures in 236.7 Negotiation.

236.5.2.4 Sale of Uneconomic Remnants Prior to Clearance of the Project

Prior to clearance of the right of way project, the district is authorized to negotiate for the outright sale of any uneconomic remnants that were purchased and not traded during negotiations, in accordance with procedures set out in 236.5.4. In these situations, it will not be necessary to obtain approval of the Right of Way Management Committee; however, the district utility engineer should be consulted to determine the possible need for utility adjustments in conjunction with the project. It is also not necessary to appraise uneconomic remnants sold prior to placing them in inventory. The amount paid for a remnant can be used to determine the value when it is sold prior to clearance of the right of way project.

236.5.2.5 Final District Action Involving Uneconomic Remnants

When negotiations are complete on a right of way project, district right of way shall submit to district design a list of all uneconomic remnants purchased and not disposed of. District design in consultation with district right of way shall make a determination as to whether or not these uneconomic remnants will be retained as permanent right of way or as excess property.

After a determination is made, district right of way will advise the Right of Way Division by letter of the uneconomic remnants classified as excess, and placed in the excess property inventory.

District design will assure that final plans are revised to incorporate uneconomic remnants retained as permanent right of way.

236.5.3 Excess by Change in Route Status

236.5.3.1 Relinquishment to LPA's

Prior to submission of the Change in Route Status Report, Local Public Agencies (LPA's) are contacted to determine their willingness to accept portions of old roads that fit into their systems. Upon completion of the requirements in the Road Relinquishment Agreement (RW27), district right of way shall prepare a deed transferring the agreed upon portion to the LPA. If applicable, the deed of conveyance shall include a utility clause and a billboard clause as set out in 236.5.4.7, and a nondiscrimination clause in accordance with 236.1.3.5. If the deed is delivered prior to completion of the new project, the deed shall include the following paragraph:

"The Missouri Highway 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."

The deed shall be forwarded to the Right of Way Division along with the Change in Route Status Report. The Right of Way Division will secure execution of the deed on behalf of the Commission by the chairman or vice-chairman and return the deed to the district. The deed shall be recorded, with instructions to the recorder to return the deed to the district. The recorded deed then shall be delivered to the LPA via a letter, which advises that all items in the Road Relinquishment Agreement have been complied with and the route is being transferred to the LPA.

A copy of the recorded deed shall be placed in the district deed file along with the deeds in which the right of way was originally acquired.

236.5.3.2 Disposal to Adjoining Property Owner(s) During Negotiations

Upon receiving approved right of way plans for a project that involves the relocation of the route that is being improved, district right of way shall review the Change in Route Status Report for any future excess right of way. (If possible the future excess should be so designated on the right of way plans.) The district shall determine which adjoining owner(s) have the underlying fee in order to determine how the excess should be sold. If the underlying fee ownership does not adjoin the excess, the excess can be made available to the owners that do adjoin it.

To determine who has the underlying fee, ownership information shall be obtained on adjacent properties. The ownership information shall be provided to district design to assist in the preparation of a plat of each excess parcel. The plat along with other information on each excess parcel shall be placed in an excess parcel file.

The future excess parcel shall be appraised at the same time the right of way for the project is being appraised. The district can then negotiate for the exchange (trade) of department-owned future excess right of way for other property or rights needed for right of way purposes from adjoining property owners in accordance with procedures in 236.7.2.14.

If applicable, the deed of conveyance shall include a utility clause and a billboard clause, as set out in 236.5.4.7. If the deed is delivered prior to completion of the new project, the deed shall include the following paragraph:

"The Missouri Highway 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."

236.5.3.3 Disposal of Future Excess Not Traded During Negotiations

Upon completion of the project, the district shall attempt to sell all remaining excess not traded during negotiations. The procedures in 236.5.4 are to be used as a guide for the disposal of this remaining excess. Prior to attempting to sell the remaining excess, the district shall review the appraisals to determine if updates are necessary. If updates are not necessary, a letter shall be placed in the file with a brief explanation. A copy of the letter shall be forwarded to the Right of Way Division when the excess parcel is sold.

The district is authorized to negotiate for the best available price. If it is advantageous to the Commission, the excess may be disposed of for one dollar ($1.00). Justification for the one-dollar disposals must be fully explained in a letter of transmittal to the Right of Way Division.

236.5.3.4 Abandonment or Retention

If the district is unable to dispose of excess in which the Commission holds less than fee simple title and when it is in the best interest of the Commission, the district shall make a request to the Right of Way Division for formal abandonment proceedings on the route.

If the Commission holds fee simple interest to the excess or if for other reasons the district determines that it is not necessary to request formal abandonment proceedings, the excess parcels shall be placed in the excess property inventory.

236.5.4 Disposal of Excess Realty or Realty Rights

236.5.4.1 Purpose

This information defines a systematic method of review through which all requests for disposal of realty or realty rights, either inventoried as excess or termed as part of the permanent right of way, must flow for approval.

236.5.4.2 Types of Excess

Excess realty and/or realty rights come from various sources. For the purpose of disposal, they are categorized as follows:

Excess right of way or uneconomic remnants that can stand-alone.

The excess can stand alone if it has adequate size, shape and access and can be used without assembling it with adjoining property.

Excess right of way or uneconomic remnants that cannot stand-alone.

The excess is either not adequate in size, shape or access to stand-alone. It must be assembled with an adjoining property.

Non-right of way excess.

This includes maintenance sites, stockpile sites, project office sites, etc. Note that although these sites are being classified as non-right of way excess, they might have been originally acquired in part or in total as right of way.

236.5.4.3 Origin of Request

A request for the sale or disposal of excess right of way may either come from the general public or from within the department as part of normal operations. A request from the general public should be in writing accompanied by a processing fee of $250, as set out in 236.5.4.8, and a copy of the requester's deed. After receiving the request, district right of way should respond in writing to the requester, advising them their request is under review and as soon as a decision is reached they will be notified. The request will be reviewed by the district engineer and forwarded to the district Right of Way Management Committee for processing.

236.5.4.4 Excess Land Conveyances & Relinquishments – Regulated Utilities

All conveyances and relinquishments of Commission-owned property shall be evaluated for the existence of any regulated utility facilities located within the areas to be conveyed or relinquished. Regulated utility facilities consist of the regulated utilities as defined by the Public Service Commission. By law, regulated utilities have the right to locate within Commission-owned property. Therefore, a conveyance or relinquishment of Commission-owned property may have implications to the utility facilities, and the utility providers who own such facilities, when the Commission no longer controls the property. It is important to maintain the continuity of utility facilities for the general public; therefore, to identify and minimize potential impacts, MoDOT shall involve utility providers in the conveyance and relinquishment processes.

236.5.4.5 Excess Land Conveyances

MoDOT shall only recommend that a property be declared excess upon satisfactorily addressing the utility impacts. Whether MoDOT or an external party initiates the conveyance of excess property, utility impacts shall be addressed by using one of the following methods:

Each utility will be relocated by permit into a new utility corridor retained by the Commission.
Each utility will remain in place with the benefit of a non-exclusive permanent utility easement.

If the Commission holds fee simple title to the property, the Commission shall convey a non-exclusive permanent utility easement to each utility provider.

If the Commission holds a less than fee simple title interest in the property, MoDOT shall facilitate the conveyance of a non-exclusive permanent utility easement from the party acquiring the property to each utility provider.

Each utility will be relocated to another portion of the property being conveyed.

If the Commission holds fee simple title to the property, the Commission shall convey a non-exclusive permanent utility easement to each utility provider.

If the Commission holds a less than fee simple title interest in the property, MoDOT shall facilitate the conveyance of a non-exclusive permanent utility easement from the party acquiring the property to each utility provider.

Each utility will be relocated onto a portion of the property already owned by the party acquiring the Commission-owned property, with the benefit of a non-exclusive permanent utility easement. (MoDOT shall facilitate the conveyance of a non-exclusive permanent utility easement from the party acquiring the property to each utility provider.)
A three-party negotiated settlement taking into consideration the overall value of the proposed transaction.
Additional options to address utility impacts may be utilized with approval from the Right of Way Director.

236.5.4.6 Road Relinquishments to Local Public Transportation Authorities

MoDOT shall only recommend the relinquishment of roadways through the Change in Route Status Report upon satisfactorily addressing the utility impacts. If the roadway will be relinquished to a local public transportation authority, with the intent that it continues to be used as a public roadway, the following clause shall be included in the deed from the Commission to the local public transportation authority:

"Grantee, by acceptance of this conveyance, covenants and agrees for itself, its successors and assigns, to allow known or unknown utility facilities currently located on the property, whether of record or not, to remain on the property, and to grant the current and subsequent owners of those facilities the right to maintain, construct and reconstruct the facilities and their appurtenances over, under, and across the land herein conveyed, along with the right of ingress and egress across the land herein conveyed to and from those utilities".

Proposed roadway relinquishments to private entities shall be reviewed in a manner consistent with the conveyance of excess property described in 236.5.4.5.

236.5.4.7 District Right of Way Management Committee

The District Right of Way Management Committee will review each request for disposal of excess right of way. The Committee shall decide if it is in the best interest of MoDOT to dispose of or lease the requested property. In all cases, consideration must be given to any possible need to retain the area for a future highway project. All requests should be handled as quickly as possible. Due to varying workloads and circumstances of each request, no fixed time will be set for district and Right of Way Division review. However, by utilizing the Committee to decide the disposition of a request, and to track the progress of the disposal, the district should be able to either deny the request or submit any disposal request to the Right of Way Division within a reasonable time after receiving the original request. The extent of review in the district and the mechanics of operation of the Committee will be left to the district's discretion.

Should the Committee decide that the requested area should not be disposed of, district right of way shall immediately notify the requesting party that the area is not available and that the processing fee will be refunded.

If the Committee approves the excess for disposal, they should give consideration to the following before selling it to the public:

Federal, State and local conservation, recreation, park, or other appropriate agencies shall be afforded the opportunity to acquire by purchase or donation in accordance with the state law, tracts of right of way being considered for disposal when there is indication that such tracts have a present or potential use for parks, conservation, recreational or related purposes. The district shall notify the appropriate agencies of its intention to dispose of unneeded portions of right of way that it considers to have present or potential use for the aforementioned purposes.

Lands or interests therein are not to be disposed of if they are suitable for retention in order to restore, preserve, or improve the scenic beauty and environmental quality adjacent to the highways.

236.5.4.8 Processing by District

Once the Committee has approved disposal of the excess, district right of way will determine if the Commission has fee simple interest or an easement for highway purposes in the area. The Commission has only an easement for highway purposes when either the deed in which the area was acquired has limitations or restrictions in it, or the area was condemned. Examples of restrictive language that would cause the Commission's interest to be limited to an easement are:

Right of way for ___ Route
For road purposes
For State highway purposes
For maintenance and construction of State highway
Any use of the word easement in describing the right of way

These examples are not all-inclusive of possible restrictive language. If other restrictive language is used in the deed, Commission interest in the excess should be considered as an easement or, if it is uncertain as to the Commission's interest being fee simple or easement, District right of way should consult with either their regional counsel or the Right of Way Division.

After it has been determined what type of interest the Commission has in the property, an appraisal or payment estimate should be completed on the property. At that time a categorical exclusion determination must be requested in accordance with instructions in 236.3.1.2. Once an estimate of value has been set and categorical exclusion determination completed the district can proceed with processing the request for disposal through the Right of Way Division.

The district shall use the Sales Agreement on all disposals of $5,000 or more. When using the sales agreement, a 10% security deposit shall be collected at the signing of the agreement. The security deposit is in addition to the processing fee, as set out in 236.5.4.9. The balance due at closing will reflect the settlement price minus the processing fee and the security deposit. The district engineer will sign the sales agreement.

In cases where the sale is unable to close on the date set out in the Sales Agreement, an Extension of Closing Date Addendum can be used to extend the closing date. The buyer and the district engineer will sign the extension. The extension agreement can be used as many times as necessary to extend the closing date, as long as both parties are agreeable to the extension. If either party is not agreeable to the extension, the contract is void. If the buyer is in default, the processing fee and security deposit shall be retained as per the agreement. If MoDOT is unable to deliver an executed deed, as per the agreement, the purchaser's processing fee and security deposit will be refunded.

On disposal of less than $5,000, the district has the option of using the Sales Agreement, or notifying the buyer in writing as to the terms and conditions of the sale. The letter is to include, at a minimum, the following:

The sale amount at which the excess is being sold.
Payment by cashier’s check or money order, payable to “Director of Revenue, Credit State Road Fund."
Sale is subject to final approval by the Commission.
Conveyance will be by quitclaim deed.
Type of interest the Commission holds in the property.
Restriction on outdoor advertising signs.
Utility reservations.
Abutter’s rights being reserved, if any.
Any other special conditions of the sale.

236.5.4.9 Methods for Disposal

Method of disposal depends upon the type of interest held by the Commission and type of excess.

A. Fee simple interest is held; all types of excess property

If the Commission has fee interest, district right of way shall determine if the area is of adequate size and in such a location that more than one member of the general public may have an interest in acquiring the property. If so, in addition to notifying the adjoining property owner(s), the area must be made available to any potential buyer and disposed of by public sale. However, if the property is of inadequate size or lacking access such that its highest and best use would be for assemblage, the excess can be sold directly to the abutting property owner(s).

If there is more than one abutting owner, each must be contacted and the file documented to indicate each owner's interest in acquiring the area being considered for disposal or any part thereof. If all owners express an interest in the area, it should be disposed of by a sealed bid sale among the interested parties. However, it is possible for each abutting owner to purchase only a portion of the excess, or for one abutting owner to purchase the entire excess. If each owner agrees in writing to an apportionment of the excess, or if all but one of the abutting owners waives their interest by signing a waiver, there is no need for a sealed bid sale and the abutting owner can be dealt with individually.

B. Stand alone excess; less than fee simple interest is held

1. Determine if the requester owns the underlying fee. If so, proceed to deal with the requester in accordance with procedures as set out further in this article.

2. If the requester does not own the underlying fee, the district should proceed in attempting to sell the excess using the following guidelines; unless the district estimates that the value is insufficient to justify the work necessary for the sale, in which case the district may consider not selling the excess.

a. The district shall determine who has the underlying fee. If the underlying fee owner can readily be located, he/she/it should be contacted and advised that they have the underlying fee and its estimate of value. They should also be advised that the Commission has an easement for right of way, which the Commission can either continue to use or, if it is in the best interest of the Commission, they can sell their interest. The district should first attempt to sell the excess to the underlying fee owner for the best negotiated price. If the underlying fee owner is not interested in acquiring the Commission's interest, the district shall request that they execute a quitclaim deed based on a negotiated amount. The negotiated amount can be either an up-front dollar amount or a percentage of the amount for which the property finally sells.

If the negotiated amount is based on an up-front payment, the underlying fee owner executes a quitclaim deed, transferring their rights to the Commission. If the negotiated amount is based on a percentage of the selling price, the quitclaim deed from the underlying fee owner can be made out directly to the buyer and delivered at closing along with the Commission's quitclaim deed.

b. If the underlying fee owner agrees to sign a quitclaim deed, the district can proceed to sell the excess by sealed bids. The initial requester shall be advised of the sealed bid sale, as well as any other interested party.

c. If the underlying fee owner refuses to sign a quitclaim deed, advise the Right of Way Division of all the facts prior to either selling or retaining the excess.

d. If the underlying fee owner cannot be located, the property can be sold by sealed bids. All bidders are to be advised of MoDOT’s interest in the property and that in order to obtain clear title they will need to get a quitclaim deed from the underlying fee owner.

C. Non-stand-alone excess; less than fee simple interest is held

1. Determine if the requester has the underlying fee or is the only abutting property owner. In these cases, the requester may be dealt with individually for the sale of the excess.

2. If the requester does not own the underlying fee, and there is more than one adjoining owner, each adjoining owner must be contacted and the file documented to indicate each owner's interest in acquiring the area or any part thereof. If all owners express an interest in the area, it should be disposed of by sealed bid sale between the interested parties. However, it is possible for each abutting owner to purchase only a portion of the excess, or for one abutting owner to purchase the entire excess. If each owner agrees in writing to an apportionment of the excess, or if all but one of the abutting owners waives their interest by signing a waiver, there is no need for a sealed bid sale and the abutting owner(s) can then be dealt with individually.

3. In either of the above two situations, the purchaser of non-stand-alone excess shall be advised of the Commission's interest in the property. If they are not the underlying fee owner, they should be advised that another party might hold the underlying fee interest in the property. They are also to be advised that the Commission is willing to release its interest in the property; however, it will be the responsibility of the buyer to determine the underlying fee owner and clear the title, if they so desire.

D. Non-right of way excess; fee or less than fee simple interest is held

Non-right of way excess is property that is or was being used for purposes other than roadway right of way. It includes excess stockpile sites, maintenance sites, construction project office sites, district office buildings, etc. Disposal of these sites are usually the result of an internal request to dispose of a site that has been replaced by a new one. Early coordination between the Right of Way Division and the requesting MoDOT work unit is needed to eliminate possible problems in the disposal. It is recommended that in the initial planning stages for the replacement of one of these sites, district right of way review the deed in which the site being replaced was acquired. Usually these sites are acquired in fee simple title in which case they can be sold in accordance with procedure "A" above. However, in some cases they were acquired by an easement deed, in which case they should be disposed of as follows:

1. District right of way shall have an appraisal done on the site and an approved value assigned to it by the reviewing appraiser.

2. District right of way shall order an environmental impact study from the Design Division to determine if remedial clean up is required before property can be sold.

3. District right of way shall determine who has the underlying fee interest in the property and if that owner can be contacted.

4. If the owner cannot be contacted with reasonable effort, the district shall take no further action until the excess is ready for sale. When it is ready for sale, the district shall sell it by sealed bids. If the appraisal needs updating, it shall be updated prior to advertising the property for sale. The advertisement shall advise all bidders as to MoDOT’s interest in the property and that in order to obtain clear title the interest of the underlying fee owner shall be secured.

5. If the owner can be contacted, district right of way shall contact the owner and advise that he/she/it have the underlying fee interest in the property. MoDOT's interest in the property shall also be explained to the owner. The owner shall be advised that the Commission has an easement for right of way, which MoDOT can either continue to use or, if it is in the best interest of MoDOT, the Commission can sell its interest. The owner of the underlying fee shall be advised of the appraised value. An offer to acquire the fee owner's interest shall then be made. The offer can either be in the form of an up-front amount or as a percentage of the amount for which the property finally sells.

If the owner is willing to sell his/her/its/their interest in the property, a quitclaim deed shall be executed in exchange for the agreed upon amount. If the owner is willing to sell his/her/its/their interest, based on a percentage of the final sales price of the property, an agreement reflecting the agreed percentage shall be prepared.

6. If interest of the underlying fee owner is obtained, and once the property is ready for sale, the excess may be sold by sealed bid sale. If the district is unable to secure interest of the underlying fee owner(s), the district shall consult with Chief Counsel’s Office before proceeding.

236.5.4.10 Transmittal to Right of Way Division

All requests for disposal of property or property rights shall be reviewed and approved in the district, then submitted to the Right of Way Division. District letters shall contain all pertinent information and explain the proposal so additional information will not be needed.

A. The letter shall cover the following points:

A summary of the sequence of events that lead to submitting the request.

If the Commission has less than fee simple title and the property can stand alone, a summary of the efforts to contact the underlying fee holder and the results of the contacts.

The method in which the excess is being sold; i.e., sealed bid, negotiated sale, trade improvements to the State system, etc.

If the property is sold to one or more adjoining owner by negotiated sale, did the excess adjoin other properties and, if so, did the other adjoiner(s) waive interest, or did the adjoining owner(s) acquiring the excess have the underlying fee to the area relinquished to him/her/it/them.

Date sale was approved by the district right of way committee, or send copy of minutes of meeting where sale was approved, or other documentation that the sale was approved by the district.

The proposed use of the area.

An explanation of the negotiated amount, if different than the appraisal.

A statement of whether utilities are located within the excess area.

A statement as to the need to reserve access rights.

A statement of the results of the environmental determination.

Any other pertinent information.

B. The following are to be attached to the transmittal letter:

One copy of the full deed or a page from the condemnation petition where the parcel was acquired.

One copy of the original request letter as submitted by the petitioner.

One copy of the appraisal or payment estimate prepared by the District in accordance with appropriate instructions.

A legible plan sheet of the area, any plats or plans of the area, and a map showing the general location of the excess.

One copy of the MoDOT Property Inventory Record.

Original CE determination.

Check list for Commission Agenda items (if applicable).

Warranty deeds or quitclaim deeds to be executed by Commission

236.5.4.11 Deed Forms and Clauses

The Quitclaim Deed is used for all property not held in full fee simple interest, or acquired for a roadway project, even if the roadway project land, excess or uneconomic remnant was acquired by warranty deed.

The Warranty Deed is only used for district/Central Office sites, maintenance sites, resident engineer sites, etc., that were acquired in fee (by a warranty deed) for non-right of way purposes.

236.5.4.11.1 Deed Clauses for Quitclaim Deeds

Use the following deed clauses for disposals by quitclaim deed.

Utility Clauses

If utilities are located within the excess area, the following reservation clause must be included in the deed: "Grantee(s), by acceptance of this conveyance, covenant and agree for (themselves/himself/herself), (his/her/its/their) successors and assigns, to permit (Name of utility company) to maintain ____ wide easement, centered on its existing (type of utility) facilities, for the purpose of maintaining, or reconstructing their existing (type of utility) facilities and its appurtenances over, under, or across the land herein conveyed."

The district utility engineer shall provide the name of any utility company having facilities within the excess area. He/she should also be able to provide the normal width that will need to be reserved for the easement. The exact location of the utility does not need to be stated in the deed, as the easement is centered on the existing facility.

Billboard Clause

In compliance with Commission Policy, of August 9, 1996, the following billboard clause is required in all deeds of conveyance of excess realty where the property lies along the national highway system (interstate and primary routes) or designated scenic byways, unless specifically waived by the Commission. If you are unsure of a specific route, check with the Outdoor Advertising Specialist in that area. Please use the correct gender for Grantee, either singular or plural.

"Grantee, for itself, its successors and assigns, by acceptance of this conveyance, covenants and agrees, and it is made a condition of this conveyance, that the property herein described shall not be used for the construction, erection or maintenance of billboards or advertising signs other than signs advertising activities conducted on the property or services and products therein provided. This shall be a covenant running with the land and is binding upon Grantee, its successors and assigns. Upon a breach of this covenant and after 10 days' written notice to Grantee or its assigns to remove said offending sign as described above, Grantor retains the right to enter the property herein conveyed and remove said sign at the sole expense and liability of Grantee or its successors and assigns."

Contamination Clauses

When disposing of maintenance sites or stockpile sites, the following two paragraphs are to be included in the deed:

"The Missouri Department of Transportation (MoDOT) has conducted a field investigation of the above described property. Based on the field investigation (which is a visual observation of the land) and a review of the Department's records concerning past use of the land, it appears that there is currently no apparent environmental contamination present due to the past activities of MoDOT on this land. However, MoDOT's findings are based solely on the information from the visual observation and review of Department files. This finding does not in any manner constitute a certification or guarantee with regard to the potential contamination of this site."

"In the event a future environmental problem arises in the vicinity of the ____________ maintenance lot, MoDOT expressly reserves the right to have access to the property to conduct additional investigations to determine if the environmental problem is related to past activities by MoDOT at the lot or due to activities that have taken place since MoDOT owned the lot. ___________ agrees to immediately notify MoDOT if an environmental problem arises and will grant MoDOT the right of reasonable access on the property to conduct investigations or testing."

Nondiscrimination Clause

Nondiscrimination clauses are required in deeds conveying land, under the following circumstances:

to another public agency with no remuneration

when the federal government participated in the cost of the property

Nondiscrimination clauses are not used in deeds conveying land under the following:

to another public agency with remuneration

to the federal government, regardless of remuneration

when there were no federal government participation in the cost of the property

The Grantee, for itself, its personal representatives, successors in interest and assigns, as a part of the consideration hereof, does hereby covenant and agree as a covenant running with the land that (1) no person on the grounds of race, color, religion, creed, sex, age, ancestry, national origin, disability or veteran status shall be excluded from participation in, denied the benefits of, or otherwise be subjected to discrimination in the use of said facilities, (2) no person shall be excluded from participation in, denied the benefits of, or otherwise be subjected to discrimination, in the construction of any improvement on, over or under such land and the furnishing of service thereon, on the grounds of race, color, religion, creed, sex, age, ancestry, national origin, disability or veteran status, (3) that Grantee shall comply with the provisions of Executive Order No. 94-03, issued by the Honorable Mel Carnahan, Governor, on January 14, 1994, which executive order is incorporated herein by reference and is made a part of this Agreement. This Executive Order promulgates a Code of Fair Practices for the Executive Branch of Missouri Government and prohibits discrimination against recipients of services, and employees or applicants or employment of state contractors and subcontractors, on the grounds of race, color, religion, national origin, sex, age, disability, or veteran status. The Grantee shall also comply with all state and federal statutes applicable to the Grantee relating to nondiscrimination, including but not limited to Chapter 213, RSMo; Title VI and Title VII of the Civil Rights Act of 1964 as amended (42 U.S.C. Sections 2000d and 20003, et seq.); and with any provision of the "Americans with Disabilities Act" (42 U.S.C. Section 12101 et seq.) which applies to the Grantee. The Grantee shall use the premises in compliance with all other requirements imposed by or pursuant to Title 49, Code of Federal Regulations, Part 21.

236.5.4.11.2 Deed Clauses for Warranty Deeds

Contamination Clause

When disposing of maintenance sites or stockpile sites, the following two paragraphs are to be included in the deed:

"The Missouri Department of Transportation (MoDOT) has conducted a field investigation of the above described property. Based on the field investigation (which is a visual observation of the land) and a review of the Department's records concerning past use of the land, it appears that there is currently no apparent environmental contamination present due to the past activities of MoDOT on this land. However, MoDOT's findings are based solely on the information from the visual observation and review of Department files. This finding does not in any manner constitute a certification or guarantee with regard to the potential contamination of this site."

"In the event a future environmental problem arises in the vicinity of the ____________ maintenance lot, MoDOT expressly reserves the right to have access to the property to conduct additional investigations to determine if the environmental problem is related to past activities by MoDOT at the lot or due to activities that have taken place since MoDOT owned the lot. ___________ agrees to immediately notify MoDOT if an environmental problem arises and will grant MoDOT the right of reasonable access on the property to conduct investigations or testing."

Nondiscrimination Clause

Nondiscrimination clauses are required in deeds conveying land, under the following circumstances:

to another public agency with no remuneration

when the federal government participated in the cost of the property

Nondiscrimination clauses are not used in deeds conveying land under the following:

to another public agency with remuneration

to the federal government, regardless of remuneration

when there were no federal government participation in the cost of the property

The Grantee, for itself, its personal representatives, successors in interest and assigns, as a part of the consideration hereof, does hereby covenant and agree as a covenant running with the land that (1) no person on the grounds of race, color, religion, creed, sex, age, ancestry, national origin, disability or veteran status shall be excluded from participation in, denied the benefits of, or otherwise be subjected to discrimination in the use of said facilities, (2) no person shall be excluded from participation in, denied the benefits of, or otherwise be subjected to discrimination, in the construction of any improvement on, over or under such land and the furnishing of service thereon, on the grounds of race, color, religion, creed, sex, age, ancestry, national origin, disability or veteran status, (3) that Grantee shall comply with the provisions of Executive Order No. 94-03, issued by the Honorable Mel Carnahan, Governor, on January 14, 1994, which executive order is incorporated herein by reference and is made a part of this Agreement. This Executive Order promulgates a Code of Fair Practices for the Executive Branch of Missouri Government and prohibits discrimination against recipients of services, and employees or applicants or employment of state contractors and subcontractors, on the grounds of race, color, religion, national origin, sex, age, disability, or veteran status. The Grantee shall also comply with all state and federal statutes applicable to the Grantee relating to nondiscrimination, including but not limited to Chapter 213, RSMo; Title VI and Title VII of the Civil Rights Act of 1964 as amended (42 U.S.C. Sections 2000d and 20003, et seq.); and with any provision of the "Americans with Disabilities Act" (42 U.S.C. Section 12101 et seq.) which applies to the Grantee. The Grantee shall use the premises in compliance with all other requirements imposed by or pursuant to Title 49, Code of Federal Regulations, Part 21.

236.5.4.12 Processing Fee

A processing fee of $100 shall be charged the party requesting MoDOT approve a conveyance of excess right of way.

A cashier's check, personal check or money order tendered by the requesting party and made payable to "Director of Revenue - Credit State Road Fund" shall be required. Upon receipt of the processing fee, district right of way shall forward the fee to district business & benefits along with a Receipt-Transmittal of Money form. A copy of the Receipt-Transmittal of Money form is also forwarded to the Right of Way Division.

NOTE: No processing fee will be charged if the proposed excess land is being given back to the original owner who donated the land or leasehold and is still in possession of contiguous property. If donated, conveyance to the original owner will be without cost, as established by Commission policy adopted July 1986. Also governmental agencies will not be charged any processing fee.

Should the requesting party elect not to follow through on the purchase of the excess land, he/she/it/they will forfeit the earnest fee. Should the Commission elect not to sell the excess land, the processing fee will be returned to the requesting party. District right of way will then request the Controller’s office issue a refund check to the original requesting party.

If a mutually agreed upon sales price is reached and the transaction is completed, the initial processing fee will be credited toward the purchase price.

If it is the district's recommendation that the requested parcel be disposed of by open sale, either sealed bid or auction, and the original requester does not get the bid, district right of way shall request that Controller issue a refund check to the original requesting party for the previously collected processing fee.

236.5.4.13 Processing by the Right of Way Division

Upon receiving a request for disposal, the Right of Way Division will forward the request to the Federal Highway Administration for its review and approval action, when excess property is located on an interstate route. If the Right of Way Division approves the request, the deed of conveyance will be forwarded to the Commission Secretary for execution on behalf of the Commission. If the property is being sold for more than $50,000 dollars and is owned in fee, all background information will be submitted to the Commission Secretary for presentation at the next Commission Meeting. If approved by the Commission, the deed will be executed on behalf of the Commission.

If the Right of Way Division rejects the sale on behalf of the Commission, the district will be notified of the rejection and the reason. The purchaser will be notified of the rejection and Controller will be requested to issue a check for refund of the processing fee and security deposit.

236.5.4.14 Approval by the Missouri Highway and Transportation Commission

In compliance with Commission policy of August 9, 1996, authority to approve the following transactions involving the conveyance of Commission-owned property or property rights, is given to the Chief Engineer or his designee.

Utility easements across Commission property.

Property to local public agencies for their use and maintenance.

Property appraised for $50,000 or less (includes property owned in fee simple title and less than fee simple title).

Property the Commission owns in less than fee simple title appraised for $50,001, or more, provided the selling price is at least 50 percent of the appraised value.

The Commission will approve the disposal of property owned in fee simple title having an appraised value of $50,001 or more.

The Chairman or Vice-Chairman of the Commission will execute the conveyance documents on behalf of the Commission.

236.5.4.15 Closing Sale

Upon receiving the executed instrument, the district shall arrange the closing of the sale. The closing can either be handled in person or by mail. If handled in person, it is recommended that a department representative meet the buyer at the county recorder's office. The buyer shall tender the balance of the purchase price by either cashier's check or money order. Upon receiving the balance of the purchase price, the district representative will deliver the deed to the buyer and have the buyer record the deed. If the closing is handled by mail, the buyer shall be advised to send the district a cashier's check or money order for the balance of the purchase price along with a check made payable to the county recorder for the recording fee. The district will mail the deed along with the check for recordation to the recorder's office with a request the deed be returned to MoDOT. When the recorded deed is returned, copies shall be made as required and the original recorded deed shall be sent to the grantee.

The district shall place either a copy of the recorded deed, or a copy of the executed deed with the recording information written on it, in the district deed file. It shall be filed with the deed by which the property was originally purchased. A copy of the executed deed, plat, plan sheet and area map shall be furnished to district maintenance and the Design Division.

236.5.5 Lease and Airspace Agreements

236.5.5.1 Purpose

This information describes leasing vacant Commission-owned property, other than through an extension of possession agreement, and for permitting the use of airspace for non-highway use by license (airspace agreement). Each district is required to obtain Right of Way Division approval to permit the use of Commission-owned property through either a lease or airspace agreement.

236.5.5.2 Leasing Commission-Owned Property (temporary use of R/W)

When Commission-owned property is not needed for current construction, or maintenance of a highway, it is permissible to lease the property to the general public. Leasing of Commission-owned property is usually done in situations where the use is to be temporary and the lessee takes possession of the area for a particular use. The lease shall have a specific term (usually five years), with a monthly or annual rental payment.

236.5.5.3 Airspace Agreements (permanent use of R/W)

Airspace, as used in the Code of Federal Regulations, is that space located above, at, or below the highway's established gradeline, lying within the approved right of way. For MoDOT purposes, an airspace agreement grants a license allowing the use of airspace in situations where the use is intended to be somewhat more permanent in nature. Examples of situations in which an airspace agreement is applicable are: Tunnels under the highway, overhead walkways, hiking\biking trails along or across the right of way, etc. The license may have no specific time limit and require a one time fee or may be written to specify a term length and involve periodic rental payments. Provisions for specific use of the space and for cancellation or expiration of the license are set out in the agreement.

236.5.5.4 District Review

All requests to use Commission-owned property shall originate in the district. A District Right of Way Management Committee, as established by each district, shall review each request. If, after review, it is recommended the area be leased or a license granted, District right of way will process the request and forward it to the Right of Way Division for handling.

236.5.5.5 General Guidelines for Lease of Premises Agreement

Lease agreements may be entered into by negotiations where there is only one prospective lessee for the area. If there is more than one prospective lessee, the area will be leased by sealed bid unless other adjoining owners are contacted and express no interest in leasing the area by signing a written waiver, or the area can be divided between interested owners. Those areas that can be utilized by parties other than adjoining property owners shall be offered for lease by sealed bid.

Each lease agreement will be prepared using standard paragraphs furnished by Chief Counsel’s Office.

The lease term shall not exceed five years. If an agreement is needed for a longer term, the rental rate must be updated at the end of the fifth year.

The Right of Way Division will review exceptions to the leasing policy for flexibility when requested by a district.

236.5.5.6 General Guidelines for Airspace Agreement

Airspace agreements are entered into in situations where the licensee is the only one that can use the requested airspace. It is, therefore, not necessary to determine if there are other prospective users.

An approved standard form is supplied for this use. However, the actual agreement will need to be customized to fit the particular situation, keeping in mind that certain paragraphs are standard in nature and should remain unchanged. Examples of forms used in similar situations can be obtained from the Right of Way Division. Modifications from the standard form will need approval by the Right of Way Division and the Chief Counsel’s Office.

236.5.5.7 General Rules for Leases and Airspace Agreements

Comply with all requirements of Title 23, CFR, Subpart D - Management of Real Property and conform to the provisions in the FHWA Airspace guidelines to 23 CFR 710.405-710.407.

A categorical exclusion determination must be completed on all leases and airspace agreements in accordance with instructions in 236.3.1.2.

The rate of compensation for all leases and airspace agreements will be based on a rental study or appraisal to determine fair market rent. The rental study is to be reviewed and approved by the district chief appraiser or district right of way manager with appropriate comments. Review of the appraisal is to be completed according to 236.6.4 Appraisal Review and Approval of Just Compensation.

Compensation for the license or lease does not apply when:

the area is for a utility use or occupancy under 23 CFR 645, Subpart B, or

the area use is part of a highway or transit project under Chapter 1 of Title 23 USC, or

the area is used for governmental purposes and, under state law, the State or State highway agency cannot charge another agency or political subdivision for such use and no income is generated, or

the use is governmental but non-proprietary (based on a documented legal opinion by Chief Counsel).

When an area located beneath an elevated section of a highway or bridge is being reviewed for purposes of a lease, the lessee must provide pier protection around all piers located within the leased area.

NOTES C, D and E on the Lease of Premises, must be made a part of the lease agreement along with Exhibit A-1 or A-2, depending on what type vehicles will be in the area of the lease.

236.5.5.8 Transmittal for Headquarters Right of Way Review

All requests for leases or airspace agreements are to be sent to the Right of Way Division after execution by the lessee. Requests for airspace agreements shall be sent to the Right of Way Division before execution, as it is important that the Chief Counsel’s Office review the agreement before it is executed. Airspace Agreements on the National Highway System (NHS) must be reviewed and approved by FHWA prior to execution. All requests are to be transmitted in letterform and are to include the following items:

A summary of the district review and recommendation of lease/airspace agreement conditions.

A completed copy of the MoDOT Property Inventory Record to update Right of Way Division records and verifies if there has been federal participation.

Four (4) executed originals of the lease (one each for the district, the Right of Way Division, Controller, and lessee), or three (3) unexecuted originals of the airspace agreement (one for the Right of Way Division, one for Chief Counsel’s Office, and one for FHWA) for review.

A legible plan sheet of the area (2 copies).

An estimated fair market rental value for the lease or an estimated payment for the airspace agreement (2 copies).

Plans or sketches, as necessary, to set out any pertinent features for use or to be constructed in conjunction with the use of the airspace.

A detailed 3-dimensional drawing is necessary when elevation is a consideration (2 copies). Exceptions to the requirement of a 3-dimensional drawing include recreation, public park, beautification, parking of motor vehicles, public mass transit facilities, or other similar uses of the surface area beneath an elevated highway structure or adjacent to a highway.

Other information necessary to explain the proposal (2 copies).

A copy of letter or application from lessee/licensee.

The original categorical exclusion determination.

236.5.5.9 Right of Way Division Review

The Right of Way Division reviews all proposed leases. The Federal Highway Administration also reviews the lease when leased property is located on an interstate route. If the Right of Way Division and the Federal Highway Administration concur, the Right of Way Director will execute the lease with two documents returned to the district.

The Right of Way Division and the Chief Counsel’s Office reviews all proposed airspace agreements. The Federal Highway Administration will review airspace agreements when licensed property is located on the National Highway System. When concurrence is received, or after recommended changes have been made, the district will be advised to proceed by having the licensee execute five (5) original copies of the agreement. The five (5) executed originals are to be forwarded to the Right of Way Division for further handling. The Chairman will execute the airspace agreement following Commission approval at the next Commission meeting.

After execution of either a lease or airspace agreement, two copies will be returned to the district. District personnel will deliver the lease or airspace agreement to the lessee/licensee and collect the rental payment for the lease or the payment for the license, as applicable. Also at that time, a copy of the insurance binder shall be obtained from lessee/licensee and placed in the district's file.

Checks are to be made out to the "Director of Revenue - Credit State Road Fund". Lease payments should be sent directly to Controller with a copy to Headquarters Right of Way. If this is a new lease, a notation (i.e., NEW ACCOUNT) should be put on the transmittal to Controller;, alerting them to issue an account number. District maintenance shall also be advised of the lease agreement.

236.5.5.10 Yearly Inspection

Districts shall visually inspect leased or licensed areas at least once a year to ensure compliance with the terms of the lease and/or license. Written documentation of the inspection and a copy of the current insurance binder shall be placed in the file annually.

236.5.5.11 Renewal of Lease Agreements

Prior to expiration of a lease, a determination shall be made whether there is more than one party interested in leasing the area. If more than one party is interested, sealed bids will be taken. If only one party is interested, district right of way can negotiate an acceptable rental arrangement. In all cases, a current rental study shall be prepared. The District Right of Way Management Committee shall review all renewals.

After preparation of the new lease, four (4) original copies executed by the lessee along with two (2) copies of the rental estimate and a letter summarizing the district's review shall be forwarded to the Right of Way Division for approval and execution. The letter should state if this is a new lease or a renewal.

236.5.5.12 Cancellation of Lease or Airspace Agreement

If a lease agreement is not renewed, or if either party desires to terminate a lease or airspace agreement, the district shall advise the Controller by letter of such action with a copy to the Right of Way Division and any appropriate district offices.

236.5.5.13 Inventory of Lease or Airspace Agreements

All leases and airspace agreements will be included in the MoDOT Property Inventory Record maintained by the Right of Way Division and an executed copy of each lease will be on file. Each district is required to maintain an inventory of all leases and airspace agreements to assure rent collections and inspections are current and as a reminder when renewals are necessary. The Right of Way Division will use this system as a check only for past due accounts and expirations.

236.5.6 Clearance of Right of Way

236.5.6.1 Inventory

All improvements that can be removed intact or razed from right of way shall be included in an inventory compiled by project and parcel. Such improvement information should be assembled from the appraisal documents, Negotiator's Report, appropriate legal documents, or by field inspection.

The improvement inventory record shall be maintained by each right of way office on the Improvement Inventory Data Entry Form and shall be placed in each project file.

It is imperative, in all instances, when outdoor advertising is acquired, the Outdoor Advertising Manager must be notified.

236.5.6.2 Asbestos Inspection Request

Prior to the sale or demolition of any improvements acquired as part of the right of way, the Construction and Materials Division is to perform an asbestos inspection. Requesting the inspection is the responsibility of district design. Upon receiving possession of all improvements on a project, or at least a sufficient number to make efficient use of inspection time, district right of way shall provide the following information to district design:

Job number
Tract numbers of properties to be inspected
Addresses of properties to be inspected
Plan sheets showing location of the properties
Appraisal floor plan sketches of ALL buildings to be inspected

236.5.6.3 Rodent Control

Upon possession of improvements, district personnel shall inspect the premises and determine if rodents are present. Where such inspection reveals the presence of rodents, immediate action shall be taken to provide proper extermination, except where the improvement is to be immediately removed by a demolition contractor and extermination is a part of the contract. The Missouri Pesticide Act restricts the purchase and application of restricted-use pesticides to individuals who are certified through the Department of Agriculture. MoDOT does not have certified personnel to handle these restricted-use pesticides and a State-certified professional rodent exterminator should be contacted.

Where land and improvements are acquired adjacent to or as part of a sanitary landfill and evidence of rodents exist, the district should notify the Right of Way Division that will coordinate the extermination through the Division of Health.

236.5.6.4 Extension of Possession

When the proposed letting schedule permits, an owner or tenant may be authorized an extension of possession based on a monthly rental rate, as hereinafter set out. An Extension of Possession Agreement 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]. 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. The district engineer can execute an Extension of Possession Agreement but only the Director of Program Delivery, or the Right of Way Director can execute a Lease of Premises Agreement on behalf of the Commission. Several requirements with reference to preparing this agreement are set forth in 236.8.1.14(e). After execution, a copy of the Extension of Possession Agreement is to be forwarded to the Right of Way Division.

When an owner or a tenant is granted an extension of possession, a monthly rental rate shall be established and collected in advance for each monthly period of extension. The rental value for owner-occupied and tenant-occupied property will be determined as follows:

Owner-Occupied

The monthly rental rate for an owner-occupied improvement will be based on one of two methods: (a) 80 percent of the economic rental rate as determined from the market for comparable units, or (b) two-thirds of one percent of the agreed purchase price of the property when market rental data is not readily available. It will be necessary to apply the "carve out" method if only a portion of the property is to be rented, with the rate being established to the nearest dollar.

Tenant-Occupied

The monthly rental rate for tenant-occupied property will be 80% of the actual rent being paid by the tenant when the property is acquired. In rare cases where tenants are not paying rent, the monthly rental rate will be 80% of the economic rental rate for similar property within the area. All rates shall be computed to the nearest dollar.

Free Extension

Sometimes as a result of an approved administrative settlement, an extension of possession may be granted at no cost.

Cancellation

When either party cancels an Extension of Possession Agreement, the district shall advise the Controller’s Division, by letter of such action with a copy to the Right of Way Division and any appropriate district offices.

If the Extension of Possession Agreement is being replaced with a Lease of Premises Agreement, it is not necessary to notify the Controller’s Division. Four copies of the Lease of Premises Agreement are to be submitted to the Right of Way Division with an explanation that the lease is replacing the Extension of Possession Agreement.

236.5.6.5 Acquisition and Disposal of Mobile Homes

The Department of Revenue in Jefferson City has advised that State agencies are not required to hold title and can purchase mobile homes on a bill of sale. The bill of sale must be notarized. At the time of disposal, a new bill of sale should be used and the title and a copy of the original bill of sale given to the buyer, who, in turn, will take it to the Department of Revenue for transfer of title. The title will actually transfer from the previous owner to the new owner. With a copy of the bill of sale in hand indicating the State held the title until transfer, the new owner will not have a penalty to pay.

The preferred method of handling mobile home titles is to transfer ownership to MHTC at the time of acquisition. The Department of Revenue, Motor Vehicle Bureau, P. O. Box 100, Jefferson City, MO 65105-0100, will handle this transfer when in receipt of the title and application (Form DOR-108). State agencies are tax-exempt and, therefore, MoDOT will not be charged a transfer fee. Local Department of Revenue offices have this form and should transfer the title without a charge; however, if a problem exists, the form can be completed by MoDOT's district office and forwarded directly to the Department of Revenue in Jefferson City. The Right of Way Division has a small supply of the transfer forms, if needed.

At the time of disposal, the district engineer can sign the title for the sale of the mobile home as provided in the Execution of Documents Policy, effective June 2, 1995.

236.5.6.6 Disposal

Districts are authorized to dispose of improvements by public sale after asbestos testing and abatement action has been completed (see Hazardous Materials for more specific guidelines). Public sale can be either by auction or sealed bid. When conditions warrant, prior approval may be obtained from the Right of Way Division to dispose of improvements without a public sale. If the improvements are salvaged back to the owner, asbestos testing and abatement is not required.

When sealed bids are taken for the disposal of improvements, a 10% deposit in the form of a cashier's check, personal check or money order shall be required along with the bid. This 10% deposit shall be part of the purchase price for the successful bidder. As soon as the bids are in and the improvement awarded to the successful bidder, all other deposits will be returned. Prior to submitting a bid, all prospective bidders shall be made aware that if the successful bidder declines the purchase of the improvement, the deposit will be forfeited.

Those improvements subject to vandalism should be disposed of as soon as possible after possession. If prompt disposal of such improvements is not possible, the property should be secured (boarding up all doors and windows) by maintenance personnel or by an independent contractor. If independent contractors are used, they shall be employed by competitive bidding or in emergency or hazardous situations by securing estimates from known contractors.

Every attempt must be made to allow the public adequate notice of the sale. The district can either advertise in local newspapers in the area with general circulation or place a for-sale sign on the property. The advertisement or sign should provide instructions of where to obtain more information about the property for sale. If the sale is advertised in a local newspaper, the Controller’s Division requires an affidavit accompany the statement and a copy of the advertisement before payment will be made.

The purchaser of any improvement shall be required to execute the Sale of Improvement and Performance Bond Agreement. The agreement is to be signed by the district engineer or designated representative. The amount of the performance bond should cover any cost the Commission would incur if the purchaser fails to comply with the terms of the agreement. This agreement may be revised for special situations subject to approval by the Right of Way Division and the Chief Counsel's Office. Checks for improvements are to be made payable to the "Director of Revenue-Credit State Road Fund." Checks for performance bonds are to be made payable to the "Director of Revenue-Credit State Road Fund-Escrow Account." Submit performance bond by separate check.

All receipts and performance bonds shall be submitted directly to district controller’s office with a copy of the transmittal to the Right of Way Division.

236.5.6.7 Transferring Improvements or Fixtures

When it is determined that other departments have a need for certain improvements or fixtures from a right of way project, a transfer of such improvements or fixtures must be documented by the district and prior approval of the transfer must be received from the district engineer of the district initiating the transfer request. When all approvals are secured, the Right of Way Division will process the proper paper charge documents through the Controller’s Division thereby transferring the improvement or fixture to the requesting department at its assigned salvage value, charging same to the approved fund expenditure (A.F.E.) or account of that department. District right of way shall take appropriate action to record such transfers on the project Improvement Inventory.

236.5.6.8 Removal by Demolition Contract

When the district determines that it is in the public interest to raze improvements on a given project, district design will be responsible for administering this activity. District right of way shall advise district design when legal and physical possession of the improvements is obtained. District right of way shall take appropriate action to record such action on the Improvement Inventory.

All preconstruction demolition charges shall be a part of the right of way project.

236.5.6.9 Backfilling

When considered necessary by the district engineer, MoDOT will backfill basements, swimming pools, etc., either by state personnel or contract. All such contracts will be awarded based on competitive bids. Each district shall use Forms 5-6.9 and 5-6.9a (consisting of the specifications and contract) on a county, route, and project basis. Advertising for bids shall be in local newspapers and all persons qualified to accomplish this work shall be furnished copies of the bid proposal. Contractor's Notice to Proceed shall be issued at the earliest possible date.

Supervision of backfilling will normally be the responsibility of the Construction and Maintenance Division. Each district should develop internal procedures for such inspections.

236.5.6.10 Plugging Wells

Measures must be taken immediately following possession of the property to ensure that uncapped wells do not become contaminated by surface water or debris prior to the final plugging during the construction stage. This can be done by one of the following methods:

Proceed immediately to plug the well in accordance with Standard Special Provision.

Proceed immediately to spot weld a steel plate across the top of the steel well casing to temporarily protect the well from contamination until it is finally plugged by the roadway contractor.

Any costs incurred prior to the award of the roadway contract should be charged to the project as a right of way incidental cost. Care should be taken to ensure that wells are not contaminated by debris when the house is moved from the site. The well is subject to contamination from the time the pump is removed and steps should be taken to prevent contamination as early as possible.

District construction is responsible for assuring wells are plugged in the proper manner and that the affidavit of plugging is furnished to the Clean Water Commission. District right of way shall notify district construction when the pump is removed and assure ALL wells are spotted on plans for the project.

236.5.6.11 Removal for Public Safety

If hazardous conditions are created by burned-out buildings, cisterns, ponding in basements or through vandalism that are of an immediate danger to public safety, districts must take corrective action to eliminate the hazard. Upon written requests from the district, the Right of Way Division will authorize corrective action without the benefit of competitive bids. All costs incurred in correcting hazardous conditions shall be charged as incidental costs to the right of way project involved.

236.5.6.12 Billboards Disposal Process

Billboards will not be offered back to sign owners. In order to facilitate negotiations, district right of way may agree to leave a sign in place for a specified period of time by use of an Extension of Possession Agreement for the structure and the site. The agreement should state a maximum time the sign may be left in place and a physical possession date should be agreed to by the parties.

As soon as practicable after we have possession, the sign face must be removed or obliterated, either by contract or by district maintenance, if equipment and personnel are available.

The Maintenance and Construction and Materials Divisions should be notified that the sign is available for their use. The notification should provide a description of the sign and its components. If they have a potential use for it, they should view the sign and inform district right of way that they do or do not want it.

A sign structure with components that can be used by a MoDOT division should be removed from right of way immediately. If a division needs only part of the structure, arrangements should be made to deliver the unwanted components to a specified site to be dismantled and included in a surplus auction or scrapped.

If any MoDOT division cannot use a sign structure, district right of way should determine if components are salvageable. Steel structures usually will be. Some wooden structures may be and others will not, due to either the components used or the stage of physical deterioration.

If components are not considered to be salvageable, due to poor condition or quality, district design should be notified to include demolition and disposal in the road construction contract. Disposal of signs that are potentially reusable as signs should not be included in the road contract.

If the structure or components are determined to be salvageable and are to be sold, they shall be removed and delivered to a specified site, usually a district maintenance yard. Removal and delivery may be done by contract for the specific sign or job, or a special provision may be inserted in the road construction contract for removal and delivery. There may be instances in which a sign is not accessible without going across adjoining properties. In order to avoid acquiring access, it may be necessary to wait until the road contract is let and let the contractor do all necessary work on the sign from right of way. In some instances it may be necessary to acquire access.

All signs not needed by MoDOT shall be cut to major components to render them unusable for rebuilding into signs. The intent of this provision is to prevent sign companies from profiting by easily reassembling major components into signs.

The sign components should be offered for sale in the periodic auctions for disposal of excess materials and equipment. Minimum acceptable sale prices should be established.

If an acceptable bid is received, the sign components will be sold. If no acceptable bids are received, steel sign components should be cut to sizes required by scrap dealers.

It is imperative, in all instances, when outdoor advertising is acquired, the Outdoor Advertising Manager must be notified.

236.5.6.13 Departure Provisions

Specific political subdivision regulations may necessitate deviation from the above policies. Where deviations are required, the district shall advise the Right of Way Division. The Right of Way Division must approve deviation to the established policy.

236.5.6.14 Improvement Removal by Road Contractors

All improvements that remain on the right of way and are to be removed should be reported to district design prior to awarding the construction contract. These items will be included as a part of the construction contract. The project Improvement Inventory should be completed to indicate these items are included for removal in the prime construction contract.

236.5.7 Access Rights

236.5.7.1 Purpose

This information establishes procedures for the preparation of deeds and/or appraisals for changes in granting access rights on limited or fully controlled highways.

236.5.7.2 Entrance "Widening" or "Widening and Shift"

Access control is the responsibility of the Traffic Division. Shifts and/or the widening of entrances and the granting of access rights are handled by agreements prepared by the Traffic Division. These agreements are recorded.

Conveyance from MHTC

District right of way shall prepare a quitclaim deed on any entrance shift, widening, widening and shift, or granting of access rights on limited access highways at the request of district traffic. The deed shall be sent to district traffic as soon as possible, and they, in turn, will forward it to the Traffic Division. The Traffic Division will present the deed along with the agreement to the Commission for consideration. When the Commission has executed the agreement and deed, they will be returned to district traffic. District traffic will give the agreement and deed to district right of way for recording. If the agreement is approved before the deed is prepared from the Commission to the property owner, the deed when prepared shall be forwarded to the Traffic Division who will forward it to the Commission Secretary for execution on behalf of the Commission by the Chairman or Vice Chairman of the Commission.

Conveyance to MHTC

Should the property owner have to execute a general warranty deed to the Commission releasing the existing access rights, it shall be recorded at the same time as the agreement and deed from the Commission to the property owner.

NOTE: In situations where the new access rights overlap the existing access rights, the deed releasing the existing access rights must be recorded first.

The following paragraph shall be included in all conveyances to property owners involving limited access changes at locations that could be affected by future facility upgrade to expressway or freeway standards in the right of way and construction program:

"The herein change in limited access between the property and the highway shall continue as long as the Missouri Highway and Transportation Commission does not upgrade the present highway to an expressway or freeway. If the Missouri Highway and Transportation Commission makes the decision that the highway should be upgraded to expressway or freeway standards, then the herein access change will cease and any access between the property and the highway will revert back to the access status which existed immediately prior to the execution of this document. This condition is a covenant running with the land and will be binding upon all successors and assigns of the parties herein. Further, the reversion to the earlier access status will be without any compensation to the holder of the access rights. The reversion to the earlier access status will not affect any compensation to be paid for the acquisition of additional right of way. The decision to upgrade the highway to expressway or freeway standards is in the sole discretion of the Missouri Highway and Transportation Commission."

236.5.7.3 Compensation for Changes in Access

Contiguous Properties

Compensation to the Commission for changes in access rights on contiguous property will be according to the Value Determination Schedule. It is the responsibility of district traffic to determine the amount of compensation in accordance with the schedule.

Noncontiguous Properties

Compensation for a shift in access rights between noncontiguous properties shall be determined by an appraisal, when there is a change in highest and best use, or a demonstrable change in density of use to the property to which the access rights are being shifted. The amount of compensation shall be based on the appraised enhancement value to the property receiving the break in access. If there is no change in highest and best use or density of use, the compensation is to be determined from the Value Determination Schedule.

Break in Access

Compensation for a break in access, in which no shifting of an entrance is involved, is to be determined by an appraisal. The compensation charged shall be the enhancement value to the property for the break in access or determined from the Value Determination Schedule whichever is higher.

Responsibilities

With respect to the above, it is the responsibility of district right of way to advise district traffic of the appraised enhancement value to the subject property. The responsibility of district traffic is to collect 75% of the appraised enhancement value from the property owner.

@@ Line 575: / Line 575: @@
 ===236.5.5.13 Inventory of Lease or Airspace Agreements===
-All leases and airspace agreements will be included in the MoDOT Property Inventory record maintained by the Right of Way Division and an executed copy of each lease will be on file.  Each district is required to maintain an inventory of all leases and airspace agreements to assure rent collections and inspections are current and as a reminder when renewals are necessary.  The Right of Way Division will use this system as a check only for past due accounts and expirations.
+All leases and airspace agreements will be included in the MoDOT [http://epg.modot.mo.gov/forms/RW/Chapter%205_Property%20Management/Property%20Inventory%20Record.dot Property Inventory Record] maintained by the Right of Way Division and an executed copy of each lease will be on file.  Each district is required to maintain an inventory of all leases and airspace agreements to assure rent collections and inspections are current and as a reminder when renewals are necessary.  The Right of Way Division will use this system as a check only for past due accounts and expirations.
 ==236.5.6 Clearance of Right of Way==

236.5 Property Management: Difference between revisions

Revision as of 13:10, 17 February 2009

236.5.1 General

236.5.1.1 Introduction

236.5.1.2 Federal Highway Administration Approval, Disposal and Leasing of Realty

236.5.1.3 MoDOT Property Inventory Record

236.5.1.4 Employees Purchasing Excess Property from the Commission

236.5.1.5 Handling of Funds Received

236.5.1.6 Utility Easements Across Commission Property

236.5.1.7 Release of Temporary Easements and Retention Clauses

236.5.1.8 Asset Management Committee

236.5.2 Uneconomic Remnant

236.5.2.1 Definition

236.5.2.2 Easement for Utility Facility in Place or Relocated into the Uneconomic Remnant Area

236.5.2.3 Disposal of Uneconomic Remnants During the Period of Right of Way Negotiations

236.5.2.4 Sale of Uneconomic Remnants Prior to Clearance of the Project

236.5.2.5 Final District Action Involving Uneconomic Remnants

236.5.3 Excess by Change in Route Status

236.5.3.1 Relinquishment to LPA's

236.5.3.2 Disposal to Adjoining Property Owner(s) During Negotiations

236.5.3.3 Disposal of Future Excess Not Traded During Negotiations

236.5.3.4 Abandonment or Retention

236.5.4 Disposal of Excess Realty or Realty Rights

236.5.4.1 Purpose

236.5.4.2 Types of Excess

236.5.4.3 Origin of Request

236.5.4.4 Excess Land Conveyances & Relinquishments – Regulated Utilities

236.5.4.5 Excess Land Conveyances

236.5.4.6 Road Relinquishments to Local Public Transportation Authorities

236.5.4.7 District Right of Way Management Committee

236.5.4.8 Processing by District

236.5.4.9 Methods for Disposal

236.5.4.10 Transmittal to Right of Way Division

236.5.4.11 Deed Forms and Clauses

236.5.4.11.1 Deed Clauses for Quitclaim Deeds

236.5.4.11.2 Deed Clauses for Warranty Deeds

236.5.4.12 Processing Fee

236.5.4.13 Processing by the Right of Way Division

236.5.4.14 Approval by the Missouri Highway and Transportation Commission

236.5.4.15 Closing Sale

236.5.5 Lease and Airspace Agreements

236.5.5.1 Purpose

236.5.5.2 Leasing Commission-Owned Property (temporary use of R/W)

236.5.5.3 Airspace Agreements (permanent use of R/W)

236.5.5.4 District Review

236.5.5.5 General Guidelines for Lease of Premises Agreement

236.5.5.6 General Guidelines for Airspace Agreement

236.5.5.7 General Rules for Leases and Airspace Agreements

236.5.5.8 Transmittal for Headquarters Right of Way Review

236.5.5.9 Right of Way Division Review

236.5.5.10 Yearly Inspection

236.5.5.11 Renewal of Lease Agreements

236.5.5.12 Cancellation of Lease or Airspace Agreement

236.5.5.13 Inventory of Lease or Airspace Agreements

236.5.6 Clearance of Right of Way

236.5.6.1 Inventory

236.5.6.2 Asbestos Inspection Request

236.5.6.3 Rodent Control

236.5.6.4 Extension of Possession

236.5.6.5 Acquisition and Disposal of Mobile Homes

236.5.6.6 Disposal

236.5.6.7 Transferring Improvements or Fixtures

236.5.6.8 Removal by Demolition Contract

236.5.6.9 Backfilling

236.5.6.10 Plugging Wells

236.5.6.11 Removal for Public Safety

236.5.6.12 Billboards Disposal Process

236.5.6.13 Departure Provisions

236.5.6.14 Improvement Removal by Road Contractors

236.5.7 Access Rights

236.5.7.1 Purpose

236.5.7.2 Entrance "Widening" or "Widening and Shift"

236.5.7.3 Compensation for Changes in Access

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