• Owners & Tenants
• Practitioners
• Publications
• Newsletter

Business Relocation Assistance Retrospective Study

Review of Relocation Files

The next phase of the study encompassed the review of relocation files in eight states:  Delaware, Georgia, Indiana, Maryland, Minnesota, Texas, Virginia, and Washington. The following criteria were used for reviewing relocation files:

• The business completed its move and filed all relocation claims between January 1, 2006 and December 31, 2010;
• The move was the result of a federally-funded project; and
• The move involved the displacement of the economic activity itself, rather than the displacement of personal property only.

Three people reviewed 244 relocation files between January and March, 2011. ORC provided the FHWA a written summary report and table of the actual move costs, reestablishment expenses and in-lieu of payments documented in the relocation files in comparison to each state’s maximum benefit levels for those expenses.

Prior to the review, ORC developed a matrix of the business types and structures that each state could use to identify businesses for file review. ORC then contacted each State Department of Transportation (SDOT) in advance of the review to provide information about the purpose of the Business Relocation Assistance Retrospective Study. We requested inclusion of businesses from urban and rural projects, as well as businesses of varying sizes, in terms of employees and revenue. An example of the letter sent to each SDOT is attached (Attachment B – Letter to State DOTs).

ORC reviewed a total of 244 relocation files from eight (8) states (Delaware, Georgia, Indiana, Maryland, Minnesota, Texas, Virginia and Washington). Forty-four (44) files were reviewed in Georgia, thirty-six (36) files in Indiana, thirty-nine (39) in Minnesota, thirty-two (32) in Texas and forty-one (41) in Washington. This was a representative sampling of the businesses displaced during the time period identified for review (January 1, 2006 – December 31, 2010). In addition, six (6) files were reviewed in Delaware, fifteen (15) in Maryland, and thirty-one (31) in Virginia. This represents 100% of the businesses that moved in those states as a result of SDOT projects during the review period.

Following is a summary of the actual search expenses, reestablishment expenses and fixed payments (in-lieu-of payments) for each state. These figures were then compared to that state’s maximum benefit levels (for those expenses). This information is summarized for all businesses reviewed at the end of this section, and in a spreadsheet included as Attachment C – Summary of Relocation Claims.

Delaware

ORC reviewed six (6) businesses displaced by the Delaware Department of Transportation (DelDOT) during the review period.

• 3 of the displaced businesses (50%) claimed actual moving expenses and 3 businesses (50%) claimed the fixed payment.
• 2 of the 3 businesses claiming actual costs (67%) claimed the maximum reestablishment payment of $22,500. 1 business claiming actual cost did not reestablish the business and was not eligible for reestablishment expenses.
• None of the 3 businesses claiming actual costs (0%) filed a claim for search expenses.
• All 3 businesses claiming the fixed payment (100%) claimed the maximum payment of $20,000.

Georgia

ORC reviewed forty-four (44) businesses displaced by the Georgia Department of Transportation (GDOT) during the review period.

• 32 of the displaced businesses (73%) claimed actual moving expenses and 12 businesses (27%) claimed the fixed payment.
• 24 of the 32 businesses claiming actual costs (75%) claimed a reestablishment payment, and of these, 13 (54%) claimed the maximum amount of $10,000. 11 of these businesses (46%) did not claim the maximum amount. 8 of the 32 displaced businesses (25%) did not make a claim for reestablishment expenses.
• 14 of the businesses claiming actual costs (44%) claimed search expenses, and of these, 7 (50%) claimed the maximum payment of $2,500. 7 of these businesses (50%) did not claim the maximum amount. 18 of the 32 displaced businesses (56%) did not make a claim for search expenses.
• 9 of the 12 businesses claiming the fixed payment (75%) claimed the maximum payment of $20,000, and 3 businesses (25%) claimed an amount less than the maximum.

Indiana

ORC reviewed thirty-six (36) businesses displaced by the Indiana Department of Transportation (INDOT) during the review period.

• 24 of the displaced businesses (67%) claimed actual moving expenses and 12 businesses (33%) claimed the fixed payment.
• 24 of the 24 businesses claiming actual costs (100%) claimed a reestablishment expense payment. 19 businesses (79%) claimed the maximum reestablishment payment of $10,000. The remaining 5 businesses (21%) claimed an amount less than the maximum.
• 16 of the businesses claiming actual costs (67%) claimed search expenses, and of these, 10 (63%) claimed the maximum payment of $2,500. 6 of these businesses (37%) did not claim the maximum amount. 8 of the 24 displaced businesses (33%) did not make a claim for search expenses.
• 8 of the 12 businesses claiming the fixed payment (67%) claimed the maximum payment of $20,000, and 4 businesses (33%) claimed an amount less than the maximum.

Maryland

ORC reviewed fifteen (15) businesses displaced by the Maryland State Highway Administration during the review period.

• 6 of the displaced businesses (40%) claimed actual moving expenses and 9 businesses (60%) claimed the fixed payment.
• 4 of the 6 businesses claiming actual costs (67%) claimed a reestablishment payment, and of these, 2 (50%) claimed the maximum amount of $10,000 before the maximum increased to $60,000. 2 businesses (50%) did not claim the maximum amount after it was increased to $60,000. 2 of the 6 displaced businesses (33%) did not make a claim for reestablishment expenses.
• 1 of the businesses claiming actual costs (17%) claimed search expenses, and this business claimed the maximum payment of $2,500. 5 of the displaced businesses (83%) did not make a claim for search expenses.
• 7 of the 9 businesses claiming the fixed payment (78%) claimed the maximum payment of either $20,000 or $60,000, depending on the date of the initiation of negotiations for the parcel. 2 businesses (22%) claimed an amount less than the maximum.

Minnesota

ORC reviewed thirty-nine (39) businesses displaced by the Minnesota Department of Transportation (MnDOT) during the review period.

• 20 of the displaced businesses (51%) claimed actual moving expenses and 19 businesses (49%) claimed the fixed payment.
• 20 of the 20 businesses claiming actual costs (100%) claimed a reestablishment expense payment. 14 businesses (70%) claimed the maximum reestablishment payment of $50,000. The remaining 6 businesses (30%) claimed an amount less than the maximum.
• 16 of the businesses claiming actual costs (80%) claimed search expenses, and of these, 13 (81%) claimed the maximum payment of $2,500. 3 of these businesses (19%) did not claim the maximum amount. 4 of the 20 displaced businesses (20%) did not make a claim for search expenses.
• 15 of the 19 businesses claiming the fixed payment (79%) claimed the maximum payment of $20,000, and 4 businesses (21%) claimed an amount less than the maximum.

Texas

ORC reviewed thirty-two (32) businesses displaced by the Texas State Department of Transportation (TXDOT) during the review period.

• 25 of the displaced businesses (78%) claimed actual moving expenses and 7 businesses (22%) claimed the fixed payment.
• 25 of the 25 businesses claiming actual costs (100%) filed a claim for reestablishment expenses. 22 businesses (88%) claimed the maximum reestablishment payment of $10,000. The remaining 3 businesses (12%) claimed an amount less than the maximum.
• 17 of the 25 businesses claiming actual costs (68%) claimed search expenses, and of these, 15 (88%) claimed the maximum payment of $2,500. 2 of these businesses (12%) did not claim the maximum amount. 8 of the 25 displaced businesses (32%) did not make a claim for search expenses.
• 5 of the 7 businesses claiming the fixed payment (71%) claimed the maximum payment of $20,000, and 2 businesses (29%) claimed an amount less than the maximum.

Virginia

ORC reviewed thirty-one (31) businesses displaced by the Virginia Department of Transportation (VDOT) during the review period.

• 19 of the displaced businesses (61%) claimed actual moving expenses and 12 businesses (39%) claimed the fixed payment.
• 16 of the 19 businesses claiming actual costs (84%) claimed a reestablishment expense payment, and of these, 14 (88%) claimed the maximum reestablishment payment of $25,000. 2 of the remaining businesses (12%) claimed an amount less than the maximum payment. 3 of the 19 displaced businesses (16%) did not claim a reestablishment expense payment.
• 13 of the 19 businesses claiming actual costs (68%) claimed search expenses, and of these, 11 (85%) claimed the maximum payment of $2,500. 2 businesses (15%) did not claim the maximum amount. 6 of the 19 displaced businesses (32%) did not make a claim for search expenses.
• 9 of the 12 businesses claiming the fixed payment (75%) claimed the maximum payment of $75,000, with the exception of one business that received a maximum payment of $50,000, the previous maximum payment amount. 3 businesses (25%) claimed an amount less than the maximum.

Washington

ORC reviewed forty-one (41) businesses displaced by the Washington State Department of Transportation (WSDOT) during the review period.

• 35 of the displaced businesses (85%) claimed actual moving expenses and 6 businesses (15%) claimed the fixed payment.
• 35 of the 35 businesses claiming actual costs (100%) filed a claim for reestablishment expenses. 19 businesses (54%) claimed the maximum reestablishment payment of $50,000. The remaining 16 businesses (46%) claimed an amount less than the maximum.
• 23 of the 35 businesses claiming actual costs (66%) claimed search expenses, and of these, 15 (65%) claimed the maximum payment of $2,500. 8 of these businesses (35%) did not claim the maximum amount. 12 of the 35 displaced businesses (34%) did not make a claim for search expenses.
• 6 of the 6 businesses claiming the fixed payment (100%) claimed the maximum payment of $20,000.

Summary

ORC reviewed a total of 244 businesses displaced by eight (8) different State Departments of Transportation.

• 164 of the displaced businesses (67%) claimed actual moving expenses and 80 businesses (33%) claimed the fixed payment.
• 150 of the 164 businesses claiming actual costs (91%) claimed a reestablishment expense payment. Of these, 105 businesses (70%) claimed the maximum reestablishment payment available under the displacing agency’s statutory requirement. 45 businesses (30%) did not claim the maximum payment. 14 of the 164 displaced businesses (9%) did not make a claim for reestablishment expenses.
• 100 of the 164 businesses claiming actual costs (61%) claimed a search expense payment. Of these, 71 businesses (71%) filed a claim for the maximum amount of $2,500. 29 businesses (29%) filed a claim for less than the maximum amount. 64 of the 164 displaced businesses (39%) did not file a claim for search expenses.
• 62 of the 80 businesses claiming the fixed payment (78%) claimed the maximum amount available under the displacing agency’s statutory requirements. 18 businesses (22%) claimed an amount less than the maximum.

The summarized data for each state is included in Attachment C - Summary of Relocation Claims.