HomeMy WebLinkAboutCOM 0611.001 2002-2004 I
• REAL ESTATE ACQUISITION GUIDE
DEPARTMENT OF PUBLIC WORKS
COUNTY OF HAWAII
PURPOSE: This guide is to insure that all real estate acquisition by Department is performed in a
consistent manner following appropriate procedures. By doing so properties will be obtained in
manner that is fair to property owners and the County of Hawaii.
Because many of the steps outlined will be done contractually, to clarify, we have provided a
notation that says "departmental" or "contractual" in aparenthesis. It is important to understand that
though work may be done by a contractor, direction and key decision making responsibilities still
rests with the Department and its Divisions.
I. PLANNING (Departmental)
Develop project alternatives and associated right-of-way corridors.
II. ENVIRONMENTAL ASSESSMENT & PUBLIC INVOLVEMENT (Contractual)
• A. Public input/involvement -possible first contact with the community/property owners.
B. Select alternative and associated right-of-way corridor.
III. PROJECT DESIGN (DepartmentaUContractua[)
A. Identification of properties affected by right-of-way.
B. Preparation of parcel maps and descriptions.
IV. TITLE SEARCH -DETERMINATION OF OWNERSHIP (Contractual)
May proceed with condemnation procedures if ownership is clouded, etc.
V. NOTIFICATION AND DISCLOSURE OF PROJECT (Contractual)
A. Contact owner in-person (whenever possible) and by letter. Face to face contact is
stressed in order to maximize interaction and communication. Lessees tq be involved
depending upon terms of the lease agreement.
B. Provide project information (scope, improvements, etc.) -full disclosure is essential.
C. Provide information on projects impacts on affected parcel.
• Comm. No.
Ref. To: Pnseat~d
Rsf. Uate ^MAY 5 Anne
H:\Engineering Division Data\Land Acquisition\Acquisition Guidev2.wpd Page 1 of 3
(~u~niittee by Galen iuba)
• D. Discuss with owner methods of compensation.
1. Donation in exchange for construction features -County may provide certain
constructed amenities in exchange for the right-of-way without cash compensation.
2. Dedication.
3. Donated lands from a developer or landowner.
4. Involuntary Conversion (for tax purposes).
5. Compensation by Appraisal.
VI. APPRAISAL PROCESS (Contractual)
A. Determine Scope of Work -Scope of work may include valuation of assets not normally
included in an appraisal such as replacement of landscaping, hedges, stone walls, etc.
B. Owner Accompaniment -Owner will be given the opportunity to meet with the appraiser,
engineers and others in related disciplines as part of the appraisal process. A meeting is
not mandatory. Unreasonable delays on the part of the owner in the scheduling of
meetings should not delay progress of the project.
C. Review of Appraisal -Appraisals should be reviewed by qualified knowledgeable
personnel to verify values and methods used in the appraisal process.
D. Appraisal approved by the department.
VII. ACQUISITION (Contractual)
• A. Prompt Written Offer to property owner that includes:
1. Amount of Compensation based on discussions (see Notification and Disclosure of
Project, item "D").
2. Description and location of affected property.
3. Identification of affected structures (building, trees, hedges, etc.).
B. Negotiation (Departmental/Contractual)
1. Owner of the property to be given opportunity to contest the appraised values as well
as the scope of and items in the appraisal.
2. The owner may hire his own appraiser if not satisfied with appraisal provided.
3. Settlement.
VIII. CONDEMNATION (DepartmentaUContractual)
A. Notify owners/lessees in writing that negotiations are at an impasse and will proceed with
condemnation procedures.
B. Corporation Counsel shall draft and forward condemnation resolution for consideration.
C. After the resolution is adopted by the County Council, Corporation Council shall file a
complaint in circuit court and shall serve owners of record with the complaint.
• D. Court ordered settlement of complaint.
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• IX. DOCUMENTATION
A. Title Report and insurance.
B. Parcel Map - to be recorded with deed.
C. Appraisal Report.
D. Offering Letter.
E. Acknowledgment Letter -Ernest money deposit may be paid at this time.
F. Condemnation Notification Letter.
G. Condemnation Resolution.
H. Condemnation Complaint.
I. Court Ordered Settlement.
J. Deed.
K. Settlement Statement -Record of closing costs and other monetary considerations.
L. Transaction Diary .
•
•
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• County Of Hawaii
DEPARTMENT OF PUBLIC WORKS
25 Aupuni Street
Hilo, Hawaii 96720
NEGOTIATION POLICIES AND PAYMENTS
The following briefly explains your rights as to payments for the purchase of your property and for
expenses incidental to the transfer ofsaid property; your rights as to uneconomic remnants; and steps
which are available to you ifyou elect to reject the County's offer.
1. PAYMENTS FOR PURCHASE OF PROPERTY.
a. As soon as settlement is arrived at by negotiation between you and the County'sright-of--way
agent, the documents for purchase of your property will be prepared by the County. These
will be mailed or delivered to you and upon full execution the claims will be processed and
full payment made. In the event settlement is through condemnation proceedings, payment
will be processed through the courts.
• b. In the case of acquisition through negotiation, you will not be required to sunrender
possession to your premises without receiving the agreed price. In the case of acquisition
through condemnation, you will not be required to surrender possession until the appraised
value of your property is deposited with the court. In exceptional circumstances, with the
prior approval ofthe owner, the County may obtain aright-of--entry for construction purposes
before making payment available to an owner.
2. PAYMENTS FOR EXPENSES INCIDENTAL TO TRANSFER OF PROPERTY.
In the transfer of your property to the County, you are entitled to receive reimbursement or have
the County pay to the extent it deems fair and reasonable, expenses incurred for the following:
a. Recording fees, transfer taxes and similar expenses incidental to conveyance of such
property;
b. Penalty costs for prepayment of any pre-existing recorded mortgage entered into in good
faith encumbering the property; and
c. The pro-rata portion of real property taxes paid which are allocable to a period subsequent
to the date of vesting title in the County of Hawaii, or the effective date of possession by the
County, whichever is earlier.
•
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• 3. UNECONOMIC REMNANT.
In the event the County's acquisition of a portion of your property leaves you with an
uneconomic remnant, the County shall offer to acquire your entire property.
4. REJECTION OF COUNTY'S OFFER.
Ifyou elect to reject the County's offer to purchase your property, we will request our Office of
the Corporation Counsel to file proceedings in eminent domain to acquire the necessary property.
You may do the following:
a. Obtain an appraisal by a qualified appraiser, then confer with the Deputy Corporation
Counsel assigned to your case. Ifyou prefer, you may engage an attorney to :represent you
from the outset. Once you retain an attorney, all negotiations will be carved out by him.
b. If anout-of--court settlement is reached, the conveyance will be made by a Stipulated
Judgment and Final Order of Condemnation.
c. If no settlement can be made, the case will be litigated and a Decision, Judgment and Final
Order of Condemnation will be issued by the court.
• Please communicate with the rght-of--way agent who has signed the letter of offer or the agent who
contacted you if you need clarification of any of the infonnation contained herein.
•
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•
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BUREAU OF PLANS 8r SURVEYS
DEPARTMENT OF PUBLIC WORKS
COUNTY OF HAWAII
APPROVED
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Bureau Head
E. LAND ACQUISITION
1. Appraisal & Acquisition Procedure
2. Coordination in Acquisition
3. Negotiation Policies & Payments
4. Offer (Sample Letter)
5. Right-of-Entry (Sample Letter)
•
• PROCEDURES FOR APPRAISAL 1< ACQUISITION
1. PURPOSE
This section establishes procedures for land appraisal and acquisition_
2. RESPOIJSIBILITY
The primary function of the Land Acquisiticn Section is the ~scquisition
of properties required for County prcjects. Diligent effort should be
made to acgsire the properties by negotiation and to pay just compen-
sation for the properties to be acquired.
3. PROJECT ASSIvNMENT
Upon assignment of a project, the Land Section shall:
1. Request the Engineering Section to provide two sets of the construe-
' tion plan and profile; three sets of the right-cf-way map, four
sets of descriptions and 8 sets of parcel map.
2. Prepare a Schedule of owners - This is a preliminary lis*_ of
property owners taken from Tax Office records pending receipt of
certificates of title.
4h'~'~T~`' 3. Make a check of the right-of-+~iay map with respect to the following:
~`%~"~G a. Access - whether remainder or adjacent parcels will be provided
(~r~E t_-wi-5 proper access.
O b. Remnants - whether remnants will be isolated or landlocked, and
if remnants are so small in area and unusable to owner, same
~ju(2 ~ ~Q_ x should be purchased.
~'74 IJ l~
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4. Ma}:e a check of the advance construction plans with respect to the
following:
a. 4dhether any improvements will be acquired by the taking.
b. Whether walls, fences, etc. will be relocated by the County.
c. Whether cuts and fills will cause damage to remainder_ parcels,
and if so, what remedial alterations or reconstruction is
contemplated.
5. After a review of the right-of-way map and construction plans, an
on site inspection of the entire right-of-way should be made with
the engineer assigned to the project.
6. Upon completion of the on site inspection, discuss with project
engineer any recommendations for changes i.n parcel boundaries,
reconstruction of driveways, or if other alterations should be
made.
7. Make a determination if any relocation will occur, and i:E so,
advise relocation section.
4. APPRAISALS
Before negotiation or condemnation, all parcels, easements, snd any
interests that are to be acquired shall be appraised.
1. Number of Appraisals: At least one appraisal of each parcel to
• be acquired or damaged shall be made by a competant independent
appraiser. Additional appraisers may be employed where the
appraisal is complex in nature or where the valuation is consi-
derable.
2. Selection of Appraisers - Select appraisers who are experienced
and qualified in the valuation of real property. Preferably those
who have qualified and testified in court as expert witnesses
should be retained.
a. After selection of appraiser, send letter to appraiser for a
proposal on time and cost. Include right-of-way map and
construction plans with letter.
b. Review the map and plans with the appraiser, and if any
question arises, request the assistance of the project eng;neer.
c. 41hen the proposal is accepted, send Notice to Proceed to
appraiser.
d. Inform fiscal section to issue purchase order for the appraisal
services. (If aporaiser's fee is $4,000 or more, a contract
must be executed.) .
e. Make a field inspection of the properties to be acquired and of
the comparables with the appraiser.
f. Review the appraisal report t:pon its submission. Any errors
or inconsistencies in the vaL.ration should be called to the
attention.of the appraiser ar;d have them corrected.
g. The review appraiser, with the approval of the Chief Engineer,
establishes the values that .rill be used for negotiation
• purposes.
5. TITLE SEARCHES
1. Request a Title Company for a quotation on time and fee .for searches
on the properties to be acquired. Include right-of-way map with
request.
2. If the time and fee craotation is acceptable, issue notice to proceed.
3. Inform Fiscal Section to issue purchase order for the assignment.
(If the amount of fee 'is $4,000 or more, a contract must be
executed.)
4. The Title Company shall furnish two copies of a certificate for
each property searched.
5. Review the certificates of title, and if any discrepancies are
found, return the incorrect certificate for correction.
6. NEGOTIATIONS
Every effort should be made to purchase the required parcels by a
negotiated settlement. "High Pressure" methods shall not be used.
L Prior to negotiation, send letter of intent to acquire. Include
parcel map and give a brief resume of the project and purpose.
Also inform owner that an offer will be made upon the completion
• of the appraisal.
2. Make a written offer as soon as the purchase price is es{:ablished.
Include parcel map with offer. Inform owner that a representative
of the County will contact him to discuss the offer and i:o conduct
negotiations for the purchase.
3. If negotiation appears stalemated after diligent efforts to
• purchase by negotiation has been made, contact owner and inform
him that the required parcel will be acquired through eminent
domain proceedings. Follow up with a letter and explain what
steps are available to him.
7. PREPARATION AND EXECUTIOIJ OF DOCUMENTS UPON ACCEPTANCE OF OFI'ER
1. Request Corporation Counsel to prepare four sets of conveyance
document (deed or easement grant).
2. Transmit description (2 sets), parcel map (4 sets), certificate
of title and other information necessary to prepare the document,
such as names of grantor, address, consideration, etc.
3. Request documents for release of mortgage and lease if applicable.
4. Inform fiscal section to issue purchase order for the purchase
price.
5. Have owners execute document (3 sets) acknowledgement by notary
required.
6. Transmit executed documents to Corporation Counsel for approval to
form.
7. In case of an easement grant, transmit to Mayor for his signature.
8. RECORDATION
• 1. Transmit executed document (3 sets) to Bureau of Ccnveyances for
recordation in the regular system or in the Lard Court S}'stem.
Owner's Transfer Certificate of Title must be transmittecl together
~,'ith the document for recordation in the Land Court System.
9. CONDEMNATION
If the requi-red property cannot be purchased by negotiation, the following
steps should be taken:
1. Prepare resolution for adoption by County Council for authorization
to acquire by eminent domain proceedings.
2. Upon adoption of the resolution, request Corporation Counsel to
file suit to acquire by condemnation.
10. NOTICE OF LAND ACQUISITION
1-.- Prepare Notice of Land Acquisition and transmit to Mayor's Office
for approval.
2. After approval by hlayor's Office, make distributions as follows:
a. Clerk's Office with recorded document (original).
b. Finance Department.
c. Central files.
d. Plans & Surveys with copy of recorded document.
• e. Land Section.
f. Other County Department, if and when applicable.
11. ACQUISITION OF LANDS OWNED L'Y THE STATE OF'I-IAWAII
• 1. All requests for the conveyance of State-owned lands that are
required for County projects are made to the Board of Land and
Natural Resources thr~ the }4ayor.
2. Transmit 2 parcel maps and 1 set of construction plans with request.
3. Requests for the conveyance of land for right-of-way purpose shall
be in fee.
4. Other requests of conveyances should be by Executive Orders.
12. FEDERAL AID PROJECTS
Policies and requirements for the acquisition of real property under
Federal Aid Programs shall be in ccmpli.ance with the Uniform Relocation
Assistance and Real Property Acquisition Policies Act of 197C, Public
Law 91-646.
•
•
• COORDINATION IN ACQUISITION
1. PURP056
This section suggests procedures in the coordination between the
project engineer, surveyor and the land section in land acquisition.
2. NOTIFICATION
The land section should be informed of any project that will require
the acquisition of land. This should be done during the planning
stage of the project so that changes will not have to be done to the
plans and so that the contractor will not be delayed.
3. COORDINATION
Provide the land section with:
1. Preliminary plans cf the project showing adjacent property lines
and proposed land ta'rings. Land Section shall review the plans
considering land costs, access, severance damayes, etc.
2. If subdivision is required the land section shall be informed
of the status of the processing through the Planning Department.
When the subdivision is approved, the neyotiations can be finalized.
3. The surveyor shall provide copies of the parcel map to the land
section.
• 4. The land section should be informed about the priority of the
project and an estimated project schedule.
5. The land secticn shall inform the project engineer when the land
is acquired.
6. Provide a set of final construction plans to the land ser_tion.
The plans should show property lines and land takings.
•
NEGOTIATION POLICIES AND PAYMENTS
. The following briefly erplains your rights as to payments for th.' purchase
of your property and for expenses i-ncidental to the transfer of said property;
your rights as to uneconomic remnants; and steps ~~hich are available to you
if you elect to reject the County's offer.
L PAYMENTS POR PURC}iASE OF PRGPEI2I"~
As soon as settlement is arrived at by negotiation between you and the
County's Right-of-Way Agent, the docwnents for purchase of your. property
will be prepared by the County, These will be mailed or delivered to
you and upon full execution the claims will be prodsx d and full payment
made. In the event settlement is through condemnation proceedings,
payment will be processed through the courts.
You will not be required to vacate your premises without receiving full
payment prior to vacating, both in the event settlement is reached through
negotiation and in the event settlement is through condemnation proceedings.
II. PAYMEDITS FOR EXPEA~SES INCIDENTAL ^O iPANSF'FR OF PROFER'i'Y
In the transfer of your properly to the County, you are entii_led to receive
reimbursement or have the County pay co the extent it deems 1"air and
reasonable, expenses incurred for the following:
1. Recording fees, transfer taxes and similar expenses incidental to
conveyance of such property;
2. Penalty costs for pre-payment o` any pre-existing recorded mortgage
entered into in good faith ercumberinq the prcperty; and
3. The pro-rata pcrtion of real property taxes paid ~ri:5ch are allocable
to a period subsequent to the date o£ vesting title in the State of
• Hawaii, or the effective date of possession by the County, whichever
is earlier.
III. UNECONOf9IC REMNANT
In the event the County's acquisition of a portion of your property
leaves you with an uneconomic remnant, the County shall offer to acquire
your entire property.
IV. REJECTION OF COUNTY'S OFFER
If you elect to reject the County's offer to purchase your property,
we will request the Corporation Cctmsel's Office to file proceedings
in eminent domain tc acquire the necessary property. You may do the
following:
1. Obtain an appraisal by a qualified appraiser, then confer with the
County's Attorney assigned to your case. If you prnfer, you may
engage an attorney to represent you from the outset. Once you
retain an attorney, all negotiations will be carried out by him.
2. If an out of court settlement is reached, the conveyance will be
made by a Stipulated Judgement and Final Order of Condemnation.
3. If no settlement can be made, the case will be litigated and a
Decision, Judgement and Final Order of Condemnation will be issued
by the Court.
Please communicate with the Fight-of-Way Agent who has contacted you
if you need clarification of any of the information container herein.
•
(Date)
Mr. , Attorney
(Address)
SUBJECT: KAHUKU '1bYJARDS KONA HIGi-D.~J.AY IMPROVEMENT, X03 IVO. P-19`_I7
Parcels 15, 18, 19 portions of 1'MY.: 9-3-04-9
trvmers: et al
The County of Hawaii will acquire Parcels 15, 18 and 19 from
• et al and Mrs. has advised us to contact you in regard
to our offer to purchase these parcels.
The appraisal made by an independent appraiser has been completed and
after a careful review, it has been determined that the value of the
property that the County of Hawaii will acquire in fee simple are as
follows:
Parcel 15 containing .031 acre
Parcel 18 .018 acre
Parcel 19 .005 acre
Total area .054 acre ~ $?_,125.00 per acre=
$114.75 rounded to $115.00
Therefore, based on this report, the County offers to purchase the subject
parcels in fee simple for the total sum of $115.00.
Your favorable consideration of our offer will be sincerely appreciated.
Should you have any questions please do not hesitate to contact our office.
EDWARD HARADA
Chief Engineer
• PT/jh
DEPARTMENT OF PUBLIC WORKS
• COUNTY OF HAWAII
HILO, HAWAII
LAND ACQUISITION
Parcel No.: Tax Map Key: Area:
Project:
Location:
Seller:
Instrument & Date:
Recordation Data: I ,~~p u~lA'` Pa Date
7__~ .
Consideration:
Land$
Improvements $
• Other $
TOTAL $
Description of Improvements:
Assigned to:
Department Date
Distribution: ~
Clerk's Office w/Rocument-L
Public Works - Eng. ~~ibd'G entrand .and ~~w~
Finance Department
Other:
.Dpi
March 7, 1979
•
(Owner)
(Address)
SU&SECT: Y.ukuau Street Improvements, Job No. P-1715
Drainage Easement 74, T1"U:: ?_-3-41c10
Owners:
Thank you for the construction right-of-entry which was granted to the
County of Hawaii to install an underground drainage system alar.:g the
mauka boundary of your property.
To determine a fair value for the dra~naye easement rights, we h ve
obtained the services of a-! independent appraiser to appraise th
property. The appraiser has ccmpleted the appraisal and, based n
this appraisal., the County of Hawaii offers to purchase the easement
rights for the sum. of 13X.00. '
• Please bear ;n mind that the ownership o{ the land is still vest d in
you (owners). 'ghat the Coway .is actually acquiring from the ow ers is
a privilege or the permissive right tc use your land for the ins'allation
and maintenance of the drainage system. Since the easement is 1 Gated
along the boundary and within the setback area that is required nder
the County zoning ordinance (see attached map), you will not 1cs ary
buildable area. You may sti_1.1 utilize the easement area for gar ,
landscaping and driveway purposes since the drainage system will be
placed undergroand and buried.
Your favorable consideration of our offer is respectfully solid ed.
We also request your assistance in relaying our offer to the oth x
owners.
Please don"t hesitate to contact us should you desire to further discuss
the offer or have any questions regarding the above matter.
EDWARD HARADA
Chief Engineer
Attach.
• TS/jh