Businesses, Farms, Nonprofit Organizanitons

ELIGIBILITY

Although an individual determination will be made on a case by case basis applying the applicable laws and regulations, displaced businesses, farms or nonprofit organizations are generally eligible for the relocation services and benefits provided by the agency. The types and levels of benefits and services to which a business, farm or nonprofit organization may be entitled will vary depending on the type and length of occupancy of the property.

MOVING COST REIMBURSEMENT

Businesses, farms, or nonprofit organizations may be reimbursed for actual reasonable moving expenses and related costs. Reimbursement for moving expenses may include such things as transportation of personal property; packing and unpacking; dismantling and reassembly of equipment; replacing stationary on hand; temporary storage of personal property; insurance on personal property in connection with the move; the cost of new permits or licenses required because of the move; certain professional services used in planning the move; the replacement value of property lost, stolen, or damaged in the process of moving; and the actual direct loss of tangible personal property incurred as a result of moving or discontinuing the business or farm operation. Other related moving expenses, in addition to moving of personal property, may also be reimbursable, such as: connection of utilities to the replacement site, professional services performed prior to the purchase or lease of a replacement site to determine its suitability, and impact fees or one time assessments for anticipated heavy utility usage.

Businesses, farms or nonprofit organizations may hire a professional mover or complete the move themselves. If a professional mover is hired, two bids must be received, and the move will be based upon the lower of those two bids. Expenses must be supported by receipts in order to ensure prompt reimbursement. The costs must also be reasonable and necessary. If a business, farm or nonprofit organization moves itself, it may be eligible for payment of its moving expenses in an amount not to exceed the lower of two acceptable bids or be based on actual time supported by receipted bills for labor and equipment.

Businesses, farms or nonprofit organizations may also be eligible for reimbursement for searching for a replacement location. They may be entitled to reimbursement for their actual expenses, not to exceed $2,500, in searching for a new site. The reimbursement may cover such things as their transportation costs, meals and lodging, time spent searching, certain realtor fees, time spent in obtaining permits and attending zoning hearings, and time spent negotiating the purchase of a replacement site.

Not all expenses associated with a move will be eligible for reimbursement. Things such as the cost of moving any structure, interest on a loan to cover moving expenses; loss of goodwill; loss of profits; loss of trained employees; any legal fees or other costs for preparing a claim for a relocation payment; or the cost for storage of personal property on real property already owned or leased by the displaced business, farm or nonprofit are not eligible for reimbursement as moving expenses.

Any expenses incurred in connection with moving or reestablishment prior to receiving a Notice of Eligibility may not be eligible for reimbursement.

Notification to the agency and inspection by the agency are required prior to moving. Businesses, farms or organizations need to make sure the agency knows their moving plans. To ensure that they are eligible for reimbursement, businesses, farms or organizations must provide the agency with reasonable advance written notice of the approximate date of the start of the move or disposition of the personal property and a list of the items to be moved. Businesses, farms or organizations must also permit the agency to make reasonable and timely inspections of the personal property at both the displacement and replacement sites and to monitor the move.

FIXED PAYMENT IN LIEU OF ACTUAL MOVING EXPENSES

Businesses, farms and nonprofit organizations may be eligible to choose a fixed payment in lieu of actual moving and related expenses. The amount of the fixed payments is set by the U.S. D.O.T.

BUSINESSES

For businesses, the fixed payment which may be received in lieu of actual moving and related expenses will be equal to the average annual net earnings of the business. Currently, the payment must not be less than $1,000 nor more than $20,000. The agency will require that a displaced business provide proof of its net earnings through income tax returns, certified financial statements, or other reasonable evidence.

In order for a business to be eligible for a fixed payment in lieu of actual moving expenses, the agency must determine that the business meets the standards set out in the rules. The standards include, but are not limited to, the following requirements:

(1) The business must have personal property it is required to move;

(2) The business cannot be relocated without substantial loss of its existing patronage;

(3) The business is not part of a commercial enterprise having more than three other entities engaged in the same or similar business activities and which are not being acquired; and

(4) The business must have contributed materially to the income of the displaced person during the past two taxable years.

FARM OPERATIONS

A displaced farm operation may choose a fixed payment, in lieu of the payments for actual moving and related expenses, in an amount equal to its average annual net earnings, but not less than $1,000 nor more than $20,000. In the case of a partial acquisition of land which was a farm operation before the acquisition, the fixed payment shall be made only if the agency determines that:

(1) The acquisition of part of the land caused the operator to be displaced from the farm operation on the remaining land; or

(2) The partial acquisition caused a substantial change in the nature of the farm operation.

NONPROFIT ORGANIZATIONS

A displaced nonprofit organization may currently choose a fixed payment of $1,000 to $20,000, in lieu of the payments for actual moving and related expenses, if the agency determines that it cannot be relocated without a substantial loss of existing patronage (membership or clientele). A nonprofit organization is assumed to meet this test, unless the agency demonstrates otherwise. Any payment in excess of $1,000 must be supported with financial statements for the two 12-month periods prior to the acquisition. The amount to be used for the payment is the average of 2 years annual gross revenues less administrative expenses.

RE-ESTABLISHMENT EXPENSES

Displaced businesses, farms or nonprofit organizations may also be eligible for reimbursement of certain expenses they incur in reestablishing the business, farm or non-profit organization. The maximum amount of the reimbursement is currently $50,000.00. Businesses, farms, or organizations will only be reimbursed for expenses actually incurred and which are considered reasonable and necessary by the agency. The types of expenses which may be reimbursed include such things as:

(1) Repairs or improvements to the replacement real property when required by law

(2) Modifications to the replacement property to accommodate the business operation or make replacement structures suitable for conducting the business

(3) Construction and installation costs for exterior signing to advertise the business at the replacement site

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

(5) Advertisement of replacement location

(6) Estimated increased costs of operation during the first 2 years at the replacement site for such items as lease or rental charges, personal or real property taxes, insurance premiums, and utility charges (excluding impact fees).

(7) Other items that the agency considers essential to the reestablishment of the business.

Certain reestablishment costs are not reimbursable. These include expenditures that are not reasonable or not determined to be necessary. In addition, the following expenditures are not eligible for reimbursement.

(1) The purchase of capital assets, such as office furniture, filing cabinets, machinery, or trade fixtures

(2) The purchase of manufacturing materials, production supplies, product inventory, or other items used in the normal course of the business operation

(3) Interest on money borrowed to make the move or purchase the replacement property

(4) Payment to a part-time business in the home which does not contribute materially to the household income

RELOCATION ASSISTANCE ADVISORY SERVICES

Businesses, farms or organizations may be eligible for relocation advisory services for the purpose of helping them to relocate to a suitable replacement property. These services include a determination of your needs, an advisor explaining relocation payments, and help in submitting and processing relocation claims. Advisor services also involve things such as exploring listings of properties, including such things as purchase prices and rentals costs of suitable replacements. Efforts will be made to assist businesses, farms and nonprofit organizations in remaining in the community. Efforts will also include identification of other possible sources of funding to assist in the move. If businesses, farms or organizations have special problems resulting from the relocation, the advisor will make every effort to assist them in obtaining services from both public and private agencies which may have the expertise to assist them.

DOCUMENTATION AND FILING

Any claim for a relocation payment must be supported by such documentation as may be reasonably required to support expenses incurred, such as bills, certified prices, appraisals, or other evidence of such expenses. A displaced business, farm or organization must be provided reasonable assistance necessary to complete and file any required claim for payment.

Businesses, farms or organizations must file all of their claims for relocation payments with the agency within 18 months after the date they are required to move. If they are an owner of the property you will need to file all of their claims for relocation payments by:

(1) The date they are required to move from the property; or

(2) The date of the final payment for the acquisition of the real property, whichever is later.

ADVANCE PAYMENTS

If businesses, farms or organizations demonstrate the need for an advance relocation payment in order to avoid or reduce a hardship, the agency may issue the payment. However, the agency will require appropriate safeguards to ensure that the payment is used for relocation.

RELOCATION BENEFITS NOT CONSIDERED INCOME

No relocation payment received by a displaced business, farm or organization will be considered as income for the purpose of the Internal Revenue Code of 1986 or for the purpose of determining the eligibility or the extent of eligibility of any person for assistance under the Social Security Act or any other Federal law, except for any Federal law providing low-income housing assistance.

Any person who is an alien not lawfully present in the United States is ineligible for relocation advisory services and relocation payments, unless such ineligibility would result in exceptional and extremely unusual hardship to a qualifying spouse, parent, or child.