XII. APPENDIX

1. Quantitative Results of Questionnaires

2. Questionnaires Used by Interviewers

3. Interstate Route I-195 - Business Relocation Pilot Project
   Providence, Rhode Island - Federal Procedures

QUANTITATIVE RESULTS OF QUESTIONNAIRES

California
Seventy-four relocation cases were reviewed in California. Forty-three businesses were personally interviewed. An additional thirty-one businesses could not be located.

There are forty-three completed interview questionnaires included in the California study. Although percentages add up to one hundred percent, they do not always include all those interviewed because not all businesses responded to a given question.

The following data represent interviews with both CALTRANS and BART business displacees.

a. Did you feel that the payments you received were adequate to move and re-establish your business?

b. If not, what specific items do you feel you should have been paid for but were not?

• Higher rent costs;
• Carpet and lighting at the replacement site;
• Contractor and engineering plan;
• Loss of goodwill;
• Extensive advertising costs;
• Code related modifications at the replacement site;
• Loss of revenue due to the move;
• Pay for time and expenses incurred to search for a new business location;
• Storage costs.

a. Did you request advisory assistance from the State?

b. In terms of advisory assistance, did the State:

i .Attempt to determine your needs and preferences?

ii. Assist in locating your replacement site?

iii. Provide references, contacts and counseling to minimize hardships?

iv. Informed you could appeal disputed amounts and payment types?

v. Did you specifically ask for any of the above listed services?

QUESTION 3

Was the payment you received for searching expenses sufficient to reimburse you for costs incurred in searching for a replacement property?

QUESTION 4

Did you have code-related cost modifications with the new site, building or equipment?

* Range of cost modifications was reported at $10,000-$300,000. Verification of the costs was not obtained as a part of this study.

QUESTION 5

Did you feel you were treated fairly by the displacing agency?

QUESTION 6

How long did it take to receive your payment from the agency?

QUESTION 7

After your move did you incur an increase or decrease in business (i.e., clients, profits, etc.)?

* What do you think caused this decrease?

• Decrease in profits due to an increase in costs;

• Loss of parking;

• Decrease in business volume due to an inferior (more affordable) location;

• Clients thought we went out of business;

• Lost clients due to the lengthy construction schedule;

• No traffic flow.

QUESTION 8

If you could design a better program, what changes would you make?

• The agency must assist business owners with increased rent when they are forced to move from a location they have been at for years; recommend a rent differential payment for at least two years from the date of displacement;

• Allow more time to vacate the displacement site; the minimum amount of time should be six months;

• Make code-related modifications an unlimited moving cost;

• Increase the reestablishment payment to at least $50,000;

• For tenants who choose to move to property they already own - they should be allowed a reimbursement for reestablishment expenses;

• The agency should hire an impartial third party Real Estate Broker to assist businesses in locating suitable replacement sites;

• The agency should be timelier in making their payments to displaced businesses.

QUESTION 9

What additional services could the displacing agency offer to lessen the impact of business displacements?

• Reimburse the displacee for attorney fees;

• Provide better coordination between the various departments within the agency;

• Provide "pleasant agents" not "hostile agents";

• Provide advisory services by agents that are experienced with their type of business;

• Provide more assistance in locating a replacement site.

Florida

Ninety-three questionnaires were originally mailed out in an attempt to identify those businesses that would be willing to participate in the Business Retrospective Study. Six questionnaires were completed and returned. Those submitting completed questionnaires via mail were also personally interviewed. Subsequent to the mail-out method, an additional forty-six businesses were contacted either in person or by telephone.

There are fifty-two completed interview questionnaires included in the Florida study. Although percentages add up to one hundred percent, they do not always include all those interviewed because not all businesses responded to all questions.

a. Did you feel that the payments you received were adequate to move and re-establish your business?

b. If not, what specific items do you feel you should have been paid for but were not?

• Carpet in the new office;

• Loss that occurred as a result of selling equipment under duress at reduced prices;

• Loss of income;

• Costs incurred to advertise the move;

• Renovations that were necessary at the replacement site;

• Loss of revenue due to the move;

• Pay for time and expenses incurred to search for a new business location.

a. Did you request advisory assistance from the State?

In terms of advisory assistance, did the State:

a. Attempt to determine your needs and preferences?

b. Assist in locating your replacement site? Did you request advisory assistance from the State?

c. Provide references, contacts and counseling to minimize hardships?

d. Inform you that you could appeal disputed amounts and payment types?

e. Did you specifically ask for any of the above services?

QUESTION 3

Was the payment you received for searching expenses sufficient to reimburse you for costs in searching for a replacement property?

QUESTION 4

Did you have code-related cost modifications with the new site, building or equipment?

*Reported range of cost modifications was $200-$70,000. Verification of these costs was not obtained as a part of this study.

QUESTION 5

Did you feel you were treated fairly by the displacing agency?

QUESTION 6

How long did it take to receive your payment from the FDOT?

QUESTION 7

After your move, did you incur an increase or decrease in business, (i.e., clients, profits, etc.)?

*What do you think caused this decrease?

• Loss of parking (This was reported four times.);
• Inadequate frontage exposure (This was reported twice.);
• Clients thought we went out of business (This was reported eight times.);
• Moved from a location with frontage on a major highway to a secondary road (This was reported once.);
• No traffic flow (This was reported twice.).

QUESTION 8

If you could design a better program, what changes would you make?

• The state at a minimum, should match businesses dollar-for-dollar for those expenses that are not currently covered;
• Provide a better explanation of benefits enabling business owners to fully understand the program;
• DOT should be more involved because we have very little interaction with DOT, we are of the opinion "they don't care";
• Simplify the "legal jargon" to make the documents more understandable to the small business owner;
• The relocation agents should have advanced training. My agent was not able to answer several questions that I had;
• DOT should have a series of "town meetings" to inform everyone at once, which would prevent the spread of inaccurate information.

QUESTION 9

• The relocation agent should be required to have a minimum number of contacts that must be made with the businesses. I didn't feel that I had an adequate advisor;
• Allow businesses more time for renovations at the replacement site;
• Compensate businesses for loss of revenue during construction;
• I would have liked more one-on-one counseling;
• The DOT should run legal advertisements for businesses announcing their impending move and subsequent move;
• The DOT should lease outdoor advertising signs in the area announcing which businesses will be moved and subsequently, their new location;
• Make payment for business related modifications at the new location (display windows, partitions, etc.);
• Have periodic meetings during the duration of the acquisition/relocation project to keep interested parties informed of the progress.

LOUISIANA

Twelve businesses were interviewed in Louisiana. One of the twelve business owners subsequently closed the business citing undue financial hardship as a result of out-of-pocket expenses not paid by the agency.

QUESTION 1

a. Did you feel that the payments you received were adequate to move and re-establish your business?

b. If not, what specific items do you feel you should have been paid for but were not?

• Loss of income;
• Code related cost modifications;
• Extensive advertising costs;
• Loss of revenue due to the move.

QUESTION 2

Did you request advisory assistance from the State?

In terms of advisory assistance, did the State:

a. Attempt to determine your needs and preferences?

b. Assist in locating your replacement site?

c. Provide references, contacts and counseling to minimize hardships?

d.Inform you that you could appeal disputed amounts and payment types?

e. Did you specifically ask for any of the above services?

QUESTION 3

Was the payment you received for searching expenses sufficient to reimburse you for costs incurred in searching for a replacement property?

QUESTION 4

Did you have code-related cost modifications with the new site, building or equipment?

*Reported range of cost modifications was $1,000-$50,000. Verification of the costs was not obtained as a part of this study. QUESTION 5

Did you feel you were treated fairly by the displacing agency?

QUESTION 6

How long did it take to receive your payment from the agency?

QUESTION 7

After your move, did you incur an increase or decrease in business, (i.e., clients, profits, etc.)?

*What do you think caused this decrease?

• New site is less visible;
• More competition of similar businesses at replacement site;
• Moved from a major road to a secondary road - less traffic.

QUESTION 8

If you could design a better program, what changes would you make?

• Combine some type of loss-of-business payment into the actual move cost;
• Train agents to provide "straight answers" with regard to when I will actually be required to move;
• Make code-related modifications an unlimited moving cost;
• Increase the reestablishment payment to at least $40,000;
• Base the displacee eligibility on actual costs incurred plus loss of business and reestablishment.

QUESTION 9

What additional services could the displacing agency offer to lessen the impact of business displacements?

• Provide better-trained agents;
• Help pay for replacement signage;
• Provide more assistance in locating a replacement site.

New Jersey

Twelve business owners were interviewed in New Jersey. One of the twelve business owners, a Chevrolet truck sales lot, experienced a partial take. The truck sales lot was reconfigured but the body shop operation, which was a part of the acquisition, could not be relocated due to replacement sites not being available. That portion of the business was closed.

QUESTION 1

a. Did you feel that the payments you received were adequate to move and re-establish your business?

b. If not, what specific items do you feel you should have been paid for but were not?

• Loss of business income;
• Code related cost modifications;
• Extensive advertising costs;
• Loss of revenue (downtime) due to the move.

QUESTION 2

Did you request advisory assistance from the State?

In terms of advisory assistance, did the State:

a .Attempt to determine your needs and preferences?

b. Assist in locating your replacement site?

c. Provide references, contacts and counseling to minimize hardships?

d. Inform you that you could appeal disputed amounts and payment types?

e. Did you specifically ask for any of the above listed services?

QUESTION 3

Was the payment you received for searching expenses sufficient to reimburse you for costs incurred in searching for a replacement property?

QUESTION 4

Did you have code-related cost modifications with the new site, building or equipment?

*Reported range of cost modifications was between $1,000-$50,000+. Verification of the costs was not obtained as a part of this study. QUESTION 5

Did you feel you were treated fairly by the displacing agency?

QUESTION 6

How long did it take you to receive your payment from the agency?

QUESTION 7

After your move, did you incur an increase or decrease in business (i.e., clients, profits, etc.)?

*What do you think caused this decrease?

• Inferior location with less traffic;
• The replacement site is not on a public transportation route whereas the displacement location was;
• Out-of-pocket costs for modifications at the replacement site.

QUESTION 8

If you could design a better program, what changes would you make?

• Provide firm and accurate time schedules for the project;
• Provide realistic search expense reimbursement;
• Reimburse necessary renovation and build-out costs at the replacement site;
• Provide expert assistance in securing financing at reasonable rates to pay for investment in a replacement location;
• Combine some type of loss of business payment with the actual move cost;
• Increase the reestablishment payment limit.

QUESTION 9

What additional services could the displacing agency offer to lessen the impact of business displacements?

• Provide better-trained agents;
• Assist with costs to send multiple mailings notifying clientele of the change of location;
• Provide more assistance in locating a replacement site.

North Carolina

Fourteen business owners were interviewed in North Carolina. One of the fourteen business owners chose retirement in lieu of reestablishing his business.

QUESTION 1

a. Did you feel that the payments your received were adequate to move and re-establish your business?

b. If not, what specific items do you feel you should have been paid for but were not?

• Code-related cost modifications;
• Site inspection and evaluation costs associated with reviewing potential site - approximately $5,000 each site;
• Additional search expenses.

QUESTION 2

Did you request advisory assistance from the State?

In terms of advisory assistance, did the State?

a. Attempt to determine your needs and preferences?

b. Assist in locating your replacement site?

c. Provide references, contacts and counseling to minimize hardships?

d. Inform you that you could appeal disputed amounts and payment types?

e. Did you specifically ask for any of the above listed services?

QUESTION 3

Was the payment you received for searching expenses sufficient to reimburse you for costs incurred in searching for a replacement property?

QUESTION 4

Did you have code-related cost modifications with the new site, building or equipment?

*Reported range of cost modifications was $500-$47,000. Verification of the costs was not obtained as a part of this study. QUESTION 5

Did you feel you were treated fairly by the displacing agency?

QUESTION 6

How long did it take to receive your payment from the agency?

QUESTION 7

After your move, did you incur an increase or decrease in business (i.e., clients, profits, etc.)?

*What do you think caused this decrease?

• Inferior location with less traffic;
• The replacement site does not allow as much walk-in traffic;
• Moved fifteen miles from the displacement site. Lost most of the clientele.

QUESTION 8

If you could design a better program, what changes would you make?

• Pay businesses for lost profits and employee salaries during the relocation;
• The agency selected the mover for my business move and the staff was not experienced. The displacee should be able to select the mover;
• Provide more assistance in locating a replacement site;
• Increase the reestablishment payment limit.

QUESTION 9

What additional services could the displacing agency offer to lessen the impact of business displacements?

• Provide the agents with more field authority;
• Provide more assistance in locating a replacement site;
• Assist with financing to enable the displacee the opportunity to purchase a replacement site.

OHIO

Eighteen business owners were interviewed in Ohio. Three of the eighteen business owners closed their respective businesses citing undue financial hardship as the main reason.

QUESTION 1

a. Did you feel that the payments you received were adequate to move and re-establish your business?

b. If not, what specific items do you feel you should have been paid for but were not?

• Payment for "downtime";
• Code-related cost modifications;
• Payment for specialized equipment necessary at the replacement site such as hydraulic lifts, etc.;
• Additional search expenses.

QUESTION 2

Did you request advisory assistance from the State?

In terms of advisory assistance from the State:

a. Attempt to determine your needs and preferences?

b. Assist in locating your replacement site?

c. Provide references, contacts and counseling to minimize hardships?

d. Inform you could appeal disputed amounts and payment types?

e. Did you specifically ask for any of the above services?

QUESTION 3

Was the payment you received for searching expenses sufficient to reimburse you for costs incurred in searching for a replacement property?

QUESTION 4

Did you have code-related cost modifications with the new site, building or equipment?

*Reported range for cost modifications was $280-$40,000. Verification of the costs was not obtained as a part of this study. QUESTION 5

Did you feel you were treated fairly by the displacing agency?

QUESTION 6

How long did it take to receive your payment from the agency?

QUESTION 7

After your move, did you incur an increase or decrease in business (i.e., clients, profits, etc.)?

*What do you think caused this decrease?

• Inferior location with less traffic count;
• Loss of business due to the construction;
• Loss of clientele due to the down period between moves.

QUESTION 8

If you could design a better program, what changes would you make?

• Use bid estimates to establish payment limits;
• Payments should cover costs "in-kind";
• Increase the in lieu cap;
• Increase the reestablishment limit;
• Make money accessible to the displacee prior to the move. I went out of business because I couldn't afford to pay the costs associated with a move;
• Make quicker payments to displacees;
• Provide a payment for loss of business and downtime.

QUESTION 9

What additional services could the displacing agency offer to lessen the impact of business displacements?

• The agency should provide signage throughout the acquisition/construction depicting the new location of each business;
• All payment limits should be removed. Displacees should be paid for what is actually involved in their move/reestablishment;
• Provide job placement assistance and training;
• Supplement income - loss of time and wages;
• Offer counseling for employees of businesses that are forced to close.

Pennsylvania - City of Pittsburgh

Five business owners were interviewed in the City of Pittsburgh. All five-business owners reported they were forced to close their respective businesses due to the financial impact of the relocation.

QUESTION 1

a. Did you feel that the payments you received were adequate to move and re-establish your business?

b. If not, what specific items do you feel you should have been paid for but were not?

• Payment for "downtime";
• Code-related cost modifications;
• Payment for specialized equipment necessary at the replacement site such as hydraulic lifts, etc.;
• Additional search expenses.

QUESTION 2

Did you request advisory assistance from the State?

In terms of advisory assistance, did the State:

a. Attempt to determine your needs and preferences?

b. Assist in locating a replacement site?

c. Provide references, contacts and counseling to minimize hardships?

d. Inform you that you could appeal disputed amounts and payment types?

e. Did you specifically ask for any of the above services?

QUESTION 3

Was the payment you received for searching expenses sufficient to reimburse you for costs incurred in searching for a replacement property?

QUESTION 4

Did you have code-related cost modifications with the new site, building or equipment?

*One business owner reported costs incurred, but she was not sure whether they were code-related. QUESTION 5

Did you feel you were treated fairly by the displacing agency?

QUESTION 6

How long did it take to receive your payment from the agency?

QUESTION 7

After your move, did you incur an increase or decrease in business (i.e., clients, profits, etc.)?

What do you think caused this decrease?

• Loss of all local clientele;
• Less visibility - now a home based business.

QUESTION 8

If you could design a better program, what changes would you make?

• Better planning;
• Coordinate business displacements that will be affected with nearby residential displacements so businesses are not "left behind" to go out of business;
• Help small businesses more financially so they are not forced to close.

QUESTION 9

What additional services could the displacing agency offer to lessen the impact of business displacements?

• Better coordination within the agency;
• Better trained personnel;
• More accurate schedules of the entire process.

Wisconsin

Twelve business owners were interviewed in Wisconsin.

QUESTION 1

a. Did you feel that the payments you received were adequate to move and re-establish your business?

b. If not, what specific items do you feel you should have been paid for but were not?

• Code-related cost modifications

QUESTION 2

Did you request advisory assistance from the State?

In terms of advisory assistance, did the State:

a. Attempt to determine your needs and preferences?

b. Assist in locating your replacement site?

c. Provide references, contacts and counseling to minimize hardships?

d. Inform you that you could appeal disputed amounts and payment types?

e. Did you specifically ask for any of the above listed services?

QUESTION 3

Was the payment you received for searching expenses sufficient to reimburse you for costs incurred in searching for a replacement property?

QUESTION 4

Did you have code-related cost modifications with the new site, building or equipment?

QUESTION 5

Did you feel you were treated fairly by the displacing agency?

QUESTION 6

How long did it take to receive your payment from the agency?

QUESTION 7

After your move, did you incur an increase or decrease in business (i.e., clients, profits, etc.)?

*What do you think caused this decrease?

• Decrease due to the sell off of cattle during an unfavorable market;
• A motel owner felt like he was forced to purchase an inferior motel with fewer rooms;
• One displacee moved his business to the remainder but reports the displacement building has not been demolished and looks abandoned. As a result, the clientele thinks the business no longer exists.

QUESTION 8

If you could design a better program, what changes would you make?

• Faster payments to displacees;
• Ensure that only one qualified agent is assigned to each displacee;
• Allow flexibility to reserve a Business Replacement Payment without the requirement to reestablish the same business;
• For businesses that relocate to the remainder of the property - demolition of the displacement building should occur immediately.

QUESTION 9

What additional services could the displacing agency offer to lessen the impact of business displacements?

• The agency should pay for the survey of the remainder property;
• Offer realistic time schedules of the process.

QUESTIONNAIRES USED BY INTERVIEWERS

State:
Project:
Parcel:

Name of Business:

Contact:

Old Address:

New Address:

Type of Business:

Phone Number:

(W)

(H)

Date of Move:

Relocation Payments Received:

a.Moving$
b.Reestablishment$
c.In Lieu$
d.Includes search payment

____ Yes
____ No

1.

a.Did you feel that the payments you received were adequate to move and re- establish your business?
____ Yes ____ No

b.If not, what specific items do you feel you should have been paid for but were not?
__________________________________________________________________

2. Did you request advisory assistance from the State?

___ Yes ____ No

In terms of advisory assistance, did the State:

Attempt to determine your needs and preferences? ____ Yes ____ No

Assist in locating replacement locations? ____ Yes ____ No

Provide references, contacts and counseling to minimize hardships? ____ Yes ____ No

Inform you that you could appeal disputed amounts and payments types? ____ Yes ____ No

Did you specifically ask for any of the above listed services? ____ Yes ____ No

Personal Interview Questionnaire Page Two

3.How did you locate your replacement site?
_________________________________________________

4.Was the payment you received for searching (the search payment) adequate?
____ Yes ____ No

5.Did you have code-related cost modifications (e.g., building codes) with the new site, building or equipment?
______ Yes ______ No

6.Approximately what was the total cost of these code-related modifications?
__________________________________________________________________

7.Do you feel you were treated fairly by the displacing agency?
____ Yes ____ No

8.How long did it take you to receive payment from the agency?
________________________________________________________________________

9.

After the completion of the move, did you incur an increase or decrease in business, i.e., clients, profits, etc.?
____ Increase ____ Decrease

What do you feel caused this increase or decrease?
__________________________________________________________________

10.If you could design a better program, what changes would you make?
________________________________________________________________________

11.What additional services could the displacing agency offer to lessen the impact of business displacements?
________________________________________________________________________

12.What was the effect of the move on your employees?
________________________________________________________________________

13.Interview remarks:

Interview completed by:

Date:

INTERSTATE ROUTE I-195 BUSINESS RELOCATION
PILOT PROJECT PROVIDENCE,
RHODE ISLAND - FEDERAL PROCEDURES

A. Purpose

These procedures have been prepared to implement the Conceptual Plan for the relocation of businesses on Federal-aid Project NHS-195-4(042) in the City of Providence, Rhode Island. The Conceptual Plan was approved by the Federal Highway Administration (FHWA) on March 30, 2000. While there are significant differences in the procedures and those published in 49 CFR Part 24, the three objectives remain the same. The procedures address the relocation function of the acquisition process, but the acquisition process remains of vital interest and the objectives in that process should be enhanced by the additional financial assistance provided for business relocations. The objectives are as follows:

To ensure that owners of real property to be acquired for this project are treated fairly and consistently, to encourage and expedite acquisition by agreements with such owners, to minimize litigation and relieve congestion in the courts, and to promote public confidence in federal and federally-assisted land acquisition programs.

To ensure that persons displaced as a direct result of federal or federally-assisted projects are treated fairly, consistently, and equitably so that such persons will not suffer disproportionate injuries as a result of projects designed for the benefit of the public as a whole.

To ensure that the Rhode Island Department of Transportation (RIDOT) and its representatives implement these procedures in a matter that is efficient and cost effective.

In planning for this project RIDOT and the City of Providence were concerned that the relocation benefits payable under the Uniform Act would be inadequate to relocate many of the businesses on this project and were concerned that those businesses could be forced either to go out of business or to relocate to less expensive areas outside of the city and in some instances outside of the state. RIDOT proposed to FHWA that it be permitted to provide enhanced financial assistance above the payment limits permitted by 49 CFR Part 24 with federal participation. The approved plan authorizes such payments. This authority, however, is limited to only those businesses that are displaced on the I-195 project. This pilot project will be analyzed under a services contract issued by the Federal Highway Administration and the study results will be included in FHWA's current national Research Contract No DTFH 61-27-D-00008 which is examining the adequacy of relocation benefits provided to businesses under the Uniform Act relocation regulations.

B. Advisory Assistance

RIDOT or its representative shall conduct a relocation assistance advisory program, which satisfies the requirements of Title VI of the Civil Rights Act of 1964, Title VIII of the Civil Rights Act of 1968 and offers the services described below. If the agency determines that a person occupying property adjacent to the real property acquired for the project is caused substantial economic injury because of such acquisition, it may offer advisory services to that person. As a part of advisory services provided the agency will:

Determine the relocation needs and preferences of each business operator to be displaced and explain the relocation payments and other assistance for which the business may be eligible, the related eligibility requirements, and the procedures for obtaining such assistance. This shall include a personal interview with each business operator.

Provide the business operator, in writing, on a continuing basis, information concerning current available comparable business properties, purchase prices and/or rental costs and locations. Assist such business operators in obtaining and becoming established in a comparable replacement location. Because these procedures provide for benefits which differ in degree and type to those in 49 CFR Part 24, it will be necessary for a high level of relocation assistance advisory services to be provided to all project displacees. Additionally, care should be taken to assure that business property referrals provided to business operators meet comparability standards but are not superior to the extent that unnecessary betterments are present.

Minimize hardships to persons in adjusting to relocation by providing counseling, advice as to other sources of assistance that may be available, and such other help as may be appropriate.

Supply business operators to be displaced with information concerning federal and state programs, which provide financial and technical assistance to businesses. Relocation agents should acquire reasonable information on available programs, be prepared to discuss these programs in general terms, and be able to refer the business operators to the agencies responsible for conducting them.

C. Moving and Related Expenses

Businesses qualifying as a displaced persons under 49 CFR 24.2(g)(1) are entitled to payment for such actual moving and related expenses which are determined by RIDOT or its representative to be reasonable and necessary. Please note 49 CFR 24.2(g)(2) for persons (including businesses) who are not considered displaced.

Reimbursable costs include those expenses set forth in 49 CFR 24.303(a)(1)through (13). Please see paragraph 6 under "Additional Moving Expenses" for changes to searching expense reimbursement. For purposes of this project, the $1,000 limit has been suspended. All such expenses, however, must continue to meet reasonable and necessary standards. Ineligible expenses are listed in 49 CFR 24.305.

D. Types of Moves

The type of mover employed will include those authorized by RIDOT's relocation procedures. Those acceptable include: (a) commercial movers including household goods carriers, general commodity carriers, specialized equipment carriers, bulk carriers, hazardous waste carriers and explosive carriers, (b) self-moves as set forth in 49 CFR 24.303(c), (c) actual cost self-moves based on documented records, and (d) moving cost findings if permitted by State procedures.

E. Additional Moving Expenses

The following items which are classified as reestablishment expenses in 49 CFR 24.304 are reclassified for purposes of the pilot project as moving expenses under 49 CFR 24.303. The $10,000 monetary limitation for all 49 CFR 24.304 expenses in aggregate, is waived, and revised higher dollar caps for the individual reclassified expenses are imposed as specified in the following discussion. To be eligible, each business must meet the definition of a small business under 49 CFR 24.2(t).

Repairs or improvements to the replacement real property as required by federal, state or local law, code or ordinance.

Modifications to the replacement property to accommodate the business operation or make replacement structures suitable for conducting the business. It is assumed for the purposes of this payment that the business will move to a building substantially appropriate for its needs. The payments made hereunder are not intended to extensively renovate structures or build-out (finish) a "shell" building. The provision of basic amenities such as heating, air conditioning, plumbing, and other items, which are common and typical in a building considered appropriate for the business, are not eligible for payment under these provisions. However, this determination does not preclude the consideration by an acquiring agency of certain limited modifications to an existing replacement business building. Eligible improvements or modifications may include the addition of necessary facilities such as a bathroom, additional room partitions required by the business, built-in display cases and similar items, if required by federal, state or local codes, ordinances, or simply considered reasonable and necessary for the operation of the business. In order for such modifications or improvements to the replacement property to be reimbursable, prior approval must be obtained by the business operator from RIDOT or its representative.

Estimated increased costs of operation during the first 2 years at the replacement site for such items as: (a) lease or rental charges, (b) personal or real property taxes, (c) insurance premiums, and (d) utility charges, excluding impact fees. The tenant must have been in occupancy for at least ninety days and an owner must have been in occupancy for at least one hundred and eighty days prior to the date of initiation of negotiations for a property to be eligible for such payments. This disbursement will be made on an installment basis with a minimum of two such payments. The estimated increased costs will be based on available comparable replacement properties.

The total amounts payable as the aggregate of provision of provisions 1,2 and 3 of paragraph E will be limited to $75,000.

Impact fees (one-time assessments) for anticipated heavy utility usage levied on the replacement business location by the utility company. The amount reimbursable for this charge is limited to the actual amount not to exceed $25,000.

The amount of searching expenses as described in 49 CFR 24.303(a)(13) actually incurred by the business operator in attempting to locate a replacement business location. Such charges must be determined by the acquiring agency to be reasonable. The dollar limitation has been waived under the provisions of 49 CFR 24.7.

F. Ineligible Moving & Related Expenses

The displaced business is not entitled to payment for:

The cost of moving any structure or other real property improvement in which the displaced business operator reserves ownership.

Interest on a loan to cover moving expenses;

Loss of goodwill;

Loss of profits;

Loss of trained employees;

Any additional operating expenses of a business incurred because of operating in a new location except as provided in paragraph E.3;

Personal injury;

Any legal fee or other cost for preparing a claim for a relocation payment or for representing the claimant before the displacing agency;

Physical changes to the real property at the replacement location of a business operation except as provided in 49 CFR 303(a)3 referenced in paragraph C. above and in paragraph E. above;

Costs for storage of personal property on real property already owned or leased by the displaced business operator.

G. Reestablishment Expenses

The remaining reestablishment expenses not reclassified and considered as moving costs for this pilot project may be reimbursed by RIDOT or its representative for this project in an aggregate amount not exceeding $10,000. The amount of actual costs reimbursed must be considered reasonable and necessary. Only those businesses that meet the definition of a "small business" as defined in 49 CFR 24.2(t) are eligible. The expenses are as follows:

Construction and installation costs for exterior signing to advertise the business;

Provision of utilities from the right-of-way to the improvements on the replacement site;

Redecoration or replacement of soiled or worn surfaces at the replacement site, such as paint, paneling, or carpeting;

Licenses, fees, and permits when not paid as part of moving expenses. These are levied on the real estate occupied by the business, not the business. Such expenses levied on the business are paid for under 49 CFR 24.303(a)(6);

Feasibility surveys, soil testing and marketing studies;

Advertisement of replacement location;

Professional services in connection with the purchase or lease of a replacement site.

The displaced business operator should discuss the eligibility for these items with RIDOT or its representative prior to authorizing such expenditures to assure reimbursement.

H. Ineligible Reestablishment Expenses

The following expenses are ineligible for reimbursement:

Purchase of capital assets such as, office furniture, filing cabinets, machinery or trade fixtures;

Purchase of manufacturing materials, production supplies, product inventory or other items used in the normal course of the business operation;

Interest on money borrowed to make the move or purchase the replacement property;

Payment to a part-time business in the home, which does not contribute materially to the household income. See 49 CFR 24.2(e) for the definition of the term "contribute materially".

I. Fixed Payment for Moving Expenses

The displaced business may be eligible for a fixed payment in lieu of the payments for actual moving and related expenses in paragraph C, additional moving expenses in paragraph E, and actual reasonable reestablishment expenses provided for in paragraph G. The requirements for such payments are those in 49 CFR 24.306 (a), (b), and (e). Nonprofit organizations must meet the additional requirements in 49 CFR 24.306 (d). In either instance the amount of the payment is the amount computed in accordance with sub-paragraph (e) but not less than $1,000 or more than $20,000.

J. Business Replacement Payments

Business Tenants

The amount of the payment computed in accordance with paragraph E3 above may be made available to the tenant business for use as a down payment on the purchase of a comparable business replacement property. In order to be eligible for such a payment, the business operator must have been in occupancy at least ninety days prior to the initiation of negotiations. The amount of the payment may not exceed $75,000.

Business Owners

The owner of a displaced business who moves the business from the building may be paid a replacement business payment if the owner has occupied the property for one hundred eighty days or more and purchases and occupies a comparable replacement building within one year from the date the owner receives final payment for the displacement building, or in the case of condemnation the date the full amount of the estimate of just compensation is deposited into court.

The computed amount of the payment shall be the amount by which the cost of the comparable replacement building exceeds the State's payment for the displacement business building, including additional refinancing charges, if any, and reasonable fees incidental to the purchase of a replacement building. The amount reimbursed by the State shall be the lesser of the computed payment or the actual amount paid for the replacement building. The maximum amount payable for the replacement business payment shall be limited to $75,000. Eligibility for this payment does not obligate the State to assure the availability of a replacement site prior to requiring displacement of the business. In the unlikely event no comparable property is available for computation of this payment, then the payment will be the lesser of the actual replacement cost of the property less the State's payment for the subject property, or $75,000. Extraordinary care should be exercised by RIDOT or its representative when approving a payment in the rare instance when a comparable replacement property is not available to assure that the costs of unnecessary betterments are not reimbursed and that the payment is reasonable and fair.

K. Comparability

A comparable business property is one when compared with the business being acquired is adequate for the business needs, is reasonably similar concerning all major characteristics, is functionally equivalent with respect to general quality of construction, condition, state of repair, land area, building square footage required, access to transportation, utilities, and public service facilities, and is available on the market.

The comparable property must also meet all applicable federal, state and local codes required of the business being displaced, and is suitable for the same type of business being conducted at the time of acquisition.

L. Replacement Properties

All business operators shall be advised that replacement properties must be inspected and approved by RIDOT or its representatives prior to any financial reimbursements to the displaced business.

This inspection is to assure that the costs of any modifications to personal property payable in accordance with paragraph C, repairs, improvements and modifications to the real estate payable in accordance with paragraph E, and costs expended in accordance with paragraph G are acceptable, and that the property meets all federal, state and local codes.

M. Incidental Costs

Costs incidental to the purchase of a replacement business property are reimbursable as a part of the replacement business payment discussed in paragraph J2 above. Such incidental costs must meet the criteria of reasonable and necessary amounts for the business being relocated, and must be costs commonly paid by the buyer. They may include, but are not limited to the following when paid by the displaced business operator-legal fees, cost of title search, notary fees, surveys, loan origination fees that do not represent prepaid interest, building or property certifications required by federal, state or local code or ordinances, appraisal fees, credit report fees, transfer taxes not to exceed the costs for a comparable replacement property, costs of recording documents, and such other costs as RIDOT or its representative determines to be incidental to the purchase of the replacement property.

N. Refinancing Costs

Where the displaced business property has an existing mortgage on the real estate that was a valid lien for at least 180 days prior to the initiation of negotiations, and a mortgage with increased interest costs is placed on the comparable replacement property, the increased mortgage costs are reimbursable. These costs are a part of the business replacement payment discussed in paragraph J2 above.

The amount of the payment is that required to reduce the mortgage balance on the new mortgage to an amount which could be amortized with the same monthly payment of principal and interest as that for the mortgage(s) on the displaced site. This payment is commonly known in the real estate industry as the "buydown." Debt service costs may be paid if not paid as incidental costs but shall be based only on bona fide mortgages in existence on the displacement business for the 180 period previously discussed. The following requirements apply to this payment:

The payment shall be based on the unpaid mortgage balance(s) on the displaced business site; however, in the event the business operator obtains a smaller mortgage than the mortgage balance(s) computed in the "buydown" determination, the payment will be prorated and reduced accordingly;

The payment shall be based on the remaining term of the mortgage(s) on the displacement site or the term of the new mortgage, whichever is shorter;

The interest rate on the new mortgage used in determining the amount of the payment shall not exceed the prevailing fixed interest rate for conventional mortgages currently charged by mortgage lending institutions in the area in which the replacement site is located;

Purchaser's points and loan origination or assumption fees, but not seller's points, shall be paid to the extent:

they are not paid as incidental expenses;

they do not exceed rates normal to similar real estate transactions in the area;

the State determines them to be necessary; and

the computation of such points and fees shall be based on the unpaid mortgage balance on the displacement business, less the amount determined for the reduction of such mortgage balance under this section;

The displaced business operator shall be advised of the approximate amount of the payment and the conditions that must be met to receive the payment as soon as the facts relative to the business' current mortgage(s) are known. The payment shall be made available at or near the time of closing on the replacement business property in order to reduce the new mortgage as intended.

Research Program: Lannie Graham lannie.graham@fhwa.dot.gov 202-366-2039