Costs of Right-of-Way Acquisition: Methods and Models for Estimation

Abstract

Transportation infrastructure and other major projects often require the taking of real property, or right-of-way (ROW). The costs of partial takings, commercial properties, remainder damages, court costs, utility relocations, and other ROW-related items are difficult to anticipate. Accurate estimation procedures are needed to facilitate budgeting and timely completion of projects. This paper reviews the literature related to ROW acquisition and property valuation. It describes the appraisal process and the influence of federal law on acquisition practices. It provides hedonic price models for estimation of costs associated with taking property using recent acquisition data from several Texas corridors and full-parcel commercial sales transactions in Texas' largest regions. Results indicate that damages depend heavily on parking, access, and location, the size of the taking is not as important as the value of improvements, and utility costs are highly variable.

Cách tiếp cận thị trường trong bảo vệ môi trường và ứng phó với biến đổi khí hậu: Kinh nghiệm Hoa Kỳ

“…Cụ thể, cơ quan thực hiện giải tỏa sẽ phải mua lại các mảnh đất theo cơ chế thị trường, dựa trên mức giá tham khảo được xác định bởi một công ty định giá độc lập, chứ không phải mức đền bù do Nhà nước quy định. Trong trường hợp một hộ gia đình nào đó không đồng ý vì bất cứ lý do nào, quy trình "Mua lại bắt buộc" (ROW) sẽ được áp dụng [21]. Khi đó, tòa án sẽ quyết định mức giá với cơ sở là mức giá tham khảo kể trên và ý kiến của các bên, từ đó bắt buộc chủ hộ phải bán lại mảnh đất cho cơ quan thực hiện giải tỏa.…”

Cost of Right-of-Way Acquisition: Recognizing the Impact of Condemnation via a Switching Regression Model

“…Accurate R/W cost estimates are usually difficult to obtain due to various uncertainties (especially in appraisal and damages from partial takings) (Anderson, 2009). Formal property appraisals can play an important role in determining the final costs of R/W acquisition (Heiner and Kockelman, 2005), because inaccurate appraisals can undermine public trust in federal land acquisition practices while increasing the odds of condemnation and incidental costs (e.g., legal costs and staff time). Unfortunately, appraisals can be far from true market valuations due to incomplete data access and collection and/or subjective biases and other limitations on the part of appraisers.…”

“…In recent years, 90 to 95 percent of state DOT acquisitions in Texas and Pennsylvania were partial takings , usually involving relatively complex contexts -such as split and irregularly-shaped remainders, changes in highest and best property uses, and diminished access. Heiner and Kockelman (2005) developed a model of acquisition costs for properties along Texas corridors. Taken area, remainder area and improved square footage were interacted with variables like year of acquisition, land use type, and parcel location (by county) to reflect unit costs on land and improvements.…”

Risk management for infrastructure corridors vulnerable to adjacent land development

“…New intersections and access points often require traffic control and signalization, thus imposing costs such as slower travel times and increased potential for safety. Rising real estate values have drastically increased the financial costs of acquiring right of way (ROW) for new construction and widening of roads (Heiner and Kockelman 2005). Transportation agencies worldwide have been slow to acknowledge how adjacent development may hinder future corridor operations and even slower to act on these findings (Thomas and Deakin 2008).…”

“…This refers to the acquisition of some or all property rights to preserve ROW for new construction or road widenings (Stokes, Russell, and Vellanki 1994). Properties or property rights may be acquired in three ways: police powers, government inducements, and financial acquisition (Barnes and Watters 2005;Heiner and Kockelman 2005;Kleinburd 1996;Kockelman 2004;Maiorana 1996;Mandelker and Blaesser 1996;Saito et al 1999;Stokes, Russell, and Vellanki 1994). Although corridor protection and its underlying activities are well documented in the literature, corridor selection methodologies are sparse.…”