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HomeMy WebLinkAbout1975-08-25 324 AC ORDER324 AC Introduced by Councilor Bigney, August 25, 1995 CITY OF BANGOR (TITLE) (0ID9Cr Aaopmvda9 and Adoptuyo Co®vuty. Development Program Real Property A qui ition P1 ._ .__.. ....._ __. _.. ............... ...._....... ._.... By iia City COMMU i Of Me City ofBanpor.. ORDERED, THAT , WHERUCkS, the City Council of the City of Bangor, in its appli- cation for funds under Title I of the Housing and Covmunity Development Act of 1974, has provided assurances and certification that the City of Bangor will: 1. In acquiring real property in connection with the Community Development Block Grant Program, be guided to the extent permitted under State Law, by the real property acquisition policies set out under Section 301 of the Uniform Relocation Assistance and Real Property Acquisition Policies Act and the provisions of 5eetion-302. thereof; 2. Pay or reimburse property owners for necessary expenses as specified in Sections 303 and 304 of the Act; and, inform affected persons of the benefits, policies, and procedures provided for under HOD regulations, and; WHEREAS, the City of Bangor Commamty Development Progress Real Property Acquisition Plan has been developed which establishes uniform policies and procedures applicable to the acquisition of reel property under the City of Bangor's Commurity Development Program in conformity with Sections 301, 302, 303 and 304 of the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970; j NOW THEREFORE BY THE CITY COUNCIL OF THE CITY OF BANGOR BE IT ORDERED, that the Community Development Program Real Property Acquisition Plan dated August, 1975 and on file with the City Clerk, is hereby approved and adopted. IN CITY COUNCIL 324 AC tPE' CEIVE4 .:August"�5, 1975 eHssed.. 0 R 0 E R NJiS h0",21 PX 4: 20 L cxTxc c Title, CITY CLERK'S FrrrY or IAN50R, MAPI [ovin a�M Ada tin Cawmnit B velopmeat Program - Real Property Acqu38itiw Plan. ' ntroduced and filed by P City of Bangor Community , veloP.ent Program Real. Property Isquinition Plan Au 3t 1995 Beal Property Acquisition Plan Table of Contents Page A. Introduction ... . ... . ..... .. . ... . . 3 B. Administration ... . ... . . .. . . . .... .. 1 C. Definitions .......... .......... 2 D. Determination of Acquisition Price .. .... . 3 I. Number of Appraisals . . ... , . . .. . . 3 2. Selection of Appraisers .......... 4 3. Cbbf=arme with State Lav and the Act .. ... 5 4. Imitation to Owner to Accompany Appraiser . . . . 5 5. Cospematim for Appeaisera .. . . . 6 6. Use of Appraisers for Otber Real Estate Services . 6 7. auildleigs, SEavctores, natures. and Other .... . Improvments . 6 8. Lriloence of penject on Property Value ... ... 7 9, properties of . . C.. M. 0 .r Review ApPraisals . .. . .. ' . 8 III Establishment Of Just Compensation .... B 32, Sumeary Statement of the Basis for Just . .. . Compensation .. ......... 8 E. Acquisition ........... ...... ll Section 1, Actions Prior to Negotiations . .. . 11 1. Notice of Intent to Acquire Real Property , ... ll 2, Agemy Lanai Acquisition Statement .. . ... 11 3, Coordination With Relocation ...... .. . . , w Section 2. Negotiations . ......... . . . .. w 1. Coercive Action.. . . . . . . . w 2. Oiscloaure of Appraisals . . . . w 3. Negotiation With Owner's Representatives .. . . . w 4. Personal Contact With Owner ... .. . w 5. Inspection Prior to Offer to Purchase . • • , .. 15 6. Basic Negotiation Procedures . . . . .. .. . 15 7, Acquisition of Tenant -Owned Improvements . , , .. 17 8. Notification to Occupants ............ 18 9. Record of Negotiations .............. IS Section 3. Condeemation .... .... . 18 1. Negotiations Required Before CoWemnatim . . . . 18 ' 2. Inverse CoMemnation .. . .. , 19 3. B1eNret Condemnation Proceedings ....... . . 19 4. COMmwation to Clear Title . . ... ... - 19 5. Instructions to Counsel in Comnstion Preceeding nte 19 Table of Contents ContiuuM F. Settlement sod Soseonden of Possession . . . . . . . 19 1. Timing ... .. 19 2. Inspection MPoet • ' • ' w 3. Po) mut of Just Compensation . . L. Pnooation of Rents eM Deposits . . . .. . . . . N 6._ Settlement Costa 21 6, Settlesent Cost Repotting Stataoent arra.. . 22 g. HL ty Days Mvmicof ft� ertNoticFormer e to Sut�endeenPossession 23 9. Ppo ut of Litigation %sponse : Certain* 23 of Cetain . G. Maintenance of Remade ............... U City of Bangor Coamanity Development Program Rcol Property Acquisition Plan A. Introduction This Plan, establishes uniform Policies and requirements applicable to the acquisition of real property under the City of Bangor's Community Development Progr.um which is subject to Title III of the Uniform welOcatipn Assistance and Real Property Acquisition Policies Act of 1990. B. Administration In the administration of its real property acquisition program, the City by and thru its Community Development Department (hereinafter referred to as "the Department') shall: a. Make every reasonable effort to acquire real ProPerty expeditiously' through negotiated agreements. b. Pay, just compensation for all property interests acquired and hontlurt its acquisition activities in a manner that minimises hardship to owners and tenants wad promotes public confidence in the City's land acquisition practices. c. Assure consistent treatment to all owners and tenants. d. Mirdmise litigation in the acquisition of real property. e. Take Oil necessary steps to remove provisions in a" instruments which purport to restrict the ownership, use or occupancy of any land acquired by the Department on the basis of race, color, religion, sex or national origin. f. Conduct its appraisal, Pr OPerty inspection, negotiation, and condmmnatien activities so that any condition or Occupancy or property in violation of law will be given rightful consideration in determining just compensation. -2- C. Pefitdtions, For the purposes of imPlamenting Title III Of the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970 (P,L. 91-646)v and the policies and procedures of this Plan, the following terms shall have the following menciaBs. a. The Act - - This term means the Uniform Relocation Assistance and Real Property Acquisition Policies Act oI 1970. Public Lew 91-6469 91st Congresst g,l, a4 stat, 1894, approved January 2, 1971. b. Owner - - This term means a person who (1) holds fee title, a life estate, a 99 -year Incas. Or a lease with not less than 50 yeas to run from date of acquisition of the PrOPertY bj the I1ePartsBat, (2) holds an interest in a cooperative housing project which incloces the right of ocrnpancy of a dwelling unit therein, (3) is the contract purchaser of aaV of the foregoing estates Or interests, (4) has a leasehold interest with an Option to purchase, or (5) possesses much other proprietary interest in the property to be acquired as, in the jUdgment of the Department, warrants consideration as Ownership. Unless otherwise indicated, a reference to an owner in this Planshall mean every Owner Of a cogmnmable interest in the property. c. Parcel - - A" tract or contiguous tracts of land in the same OwOarahip, whether one or more platted lots or parts of lots. Easements and rights -of nay for utilities and similar interests which encumber land shell he considered as separate panels, if to be 'acquired. -3— d. Fair Market Vane — This term means the amount in cash, or on terms reasonably equivalent to cash, for which in all probability the property would be aold by a knowledgeable owner willing bat not obligated to sell to a knowledgeable purchaser who desired hot is net obligated to buy. In implementing the provlsion.of this Plan, the Department may substitute another equivalent tens therefor. e Initiation of Negotiations - This term means the dy on which the Department first furnishes to the owner or his designated representative a written offer to purchase his. real property. f.- To the Greatest Extent Practicable Under State Law - This term mesa if permitted by State law. g. City - This term means the City of Bangor and the City of Bangor by and them its Department of Community Development, whichever is splicable. h. Department -This term means the Community Development Depart- ment of the City of Bangor (being more specifically described in Chapter II, Article 12 of the laws and Ordinances of the City of Bangor) and the Cmmunity Development Department by and thru the Director of Community Development, whichever is applicable. D. Determination of Acquisition Price 1. Member of appraisals. Except as provided in sub-pazagraphs a antl b of this paragraph, each property to be acquired shall be appraised independently by two competent professional appraisers. a Review Appraiser. In cases where the appraisals submitted by the two appraisers specified above are not considered adequate to determine fair market value by the Finance Committee of the City Council, a review appraiser shall be selected by the Pusses Committee to review the two appraisals and determine, on the beano of those two appraisals and other supporting data, Us opihion of fair market value. -4- b. Fixture Appraiser. In the case of machinery, equipment or other Pictures which constitute a part of the real property to be appraised, one appraisal by a qualified fixture appraiser shall be deemed suftacient for the purposes of detenmining ,just compensation therefor. 2. Selection of Appraisers. a General. Selection of appraisers shall be by selective competitive bidding ar by negotiation. The Department shell make appropriate inquiries among users of appraisal services, particularly other public agencies, to identify the best qualified appraisers for the particular assignment. The Mrector of Community Development, after reviewing the information provided to him on each appraiser, shall submit his recamrerclations to the Finance Committee of the City Council of the City of Bangor for their consideration. The finance Committee shall then consider the recommeedations of the Purchasing Agent and the Mrector of Community O Iap ment and authorize the awarding of appraisal contracts by resolution. In awarding such contracts, the Finance Committee shall take into consideration such factors as price, qual- ifications, past performance, policies set forth in Section 3 of the Affirmative Action Program, the kini of petformanee, sad such further and other factors as may relate to the cost or performance of such contracts. b. Evidence Supporting Appraisal Contract::. The Department's files shall Contain a full recoani of all ections respecting the amoraing of each appraisal contract, including: (1) Resolution of the Finance Committee of the Bangor City Council authorizing the award of the contract. (2) If more than one appraiser was considered, identification of others considered, summary of bids or proposals received, aro if the low bid or proposal is not accepted, statement of the considerations governing the selection of the appraiser. If only one appraiser was considered, adAura- tion of the basis for the selection. -5- (3) Actions taken to determine the pmvniling rates in Ganger for equivalent snrvicas# and statement of the basis for the City's deter enation of the amount of compensation provided in all contracts awarded thin negotiation. (4) Statement submitted by the appraiser setting forth his technical qualifications# general appraisal experience# specific experience in appraising pro- portion of the type involved in the project# the courts in which he has testified as an expert witnees# and other information .pertinent to estab- .lisping his professional qualifications. (5) Statement submitted by the appraiser that no conflict of interest is involved in the performance of the services. c• Review Appraisers. Review appraisers# when needed# may be selected by competitive bidding or by negotiation. 3. Appraisals shall be performed in accordance with applicable State law and the Act. a. Separate Fixture Appraisal. The Department may elect to contract separately for an appraisal covering the takiog of# or cmpensable damage to movable and immen able fiAsres# and exclude such services from the appraisal of the lard and other improv®ents. b. Personal Property. Acquisition appraisal services shall be coordinated math relmation requirements. 4. Invitation To Cwmr To Accpmoam Appraiser. Each appraiser# in- aluding the Department's reviewing appraiser# shall give the owner or his designated representative an opportunity. by reasonable advance notice in writing or otherwise# to accompany, the appraiser during his inspection of the property. The Appraisers shall maintain records to verify his efforts to fulfill this requirement. -6- 5. Compensation for Appraisers. Fees may be established either as a lump sum or as an .amount for each parcel, based on prevailing rates in Bangor for equivalent services. The fee shall include all services, supplies, and expenses. Compensation shall cwt be based on the amount of the valuation. Per diem compensation is permitted only for consulting and advisory services on an intermittent or temporary basis and for Review Appraisals. Rates for updating of appraisals in connection with judicial proceedings and for testifying as an expert witness in condemnation proceaddngs shall be stated in the contract. 6. Use of Appraisers for Other Real Estate Services. An appraiser shall not set as a negotiator for the Department or the owner in the acquisition of land which he has appraised. However, In the disposal of land, he may act as a broker or redeveloper on lend which he did not appraise or has appraised for acquisition purposes only. T. Beiltin s. Stmetures. Fixture . and Other Improvements. a. 6 ent of Interact to be Acquired. If the City acquires may interest in real property, it shall acquire at least an equal interest is all buildings, structures, fixtures, or other improvements which sew located on such property and which will be removed or which will be adversely affected by the use to which each real property will be put. b. Interest of Tenant. For the purpose of determining the ,Just compensation to be paid for any building, structure, fixture, or other improvement that would be real property if owned by the owner of the land, such building, structure, fixture or Other improvement most be considered to be real property not— withstanding the right or obligation of a tenant, as against the owner of any other interest in the real property, to remove such improvements at the expiration of Itis term. The Department shall pry to the tenant (to the extent not other— wise paid as authorised by law) as compensation for Us fmpmva— ments anI interest in the reel property, the greatest of: (1) The fair market value of the tenant's leasehold eatate in the property, (2) The ameont which such improvements contribute to the fair market value of the real property to be acgcired, or (3) The fair market value of such improvements for rmaval fron the real property. c Interest of Owner. When the interest of the tenant has been valued, the interest of the lessor or property owner is than valued without any consideration of the tenant's interest. 8. Influence of Project on Property value. To the extent permitted wrier State law, the Departmentshalldisregard any decrease or increase in the fair market value of the real property to be acquired (or the entire property of the owner in the case of a partial taking) prior to the date of valuation caused by the public improvement or project for each the property is to be acquired, or by the likelihood that the property would be acquired for such improvement or project, other than that due to phyAcal deterioration within the reasonable control of the owner. In the case of a partial taking, using the before -and -after method of valuation, the "after' value of the remaining rot -to -be -acquired portion of the property shall reflect any increase or decrease in value attributable to the project (as this determination is necessary in order to exclude the influence of the project). 9. Properties of Unusual Character. Certain properties are of such unusual character that the Department may find it appropriate to discuss with the owner the basis of cmcpensation and the mount thereof prior to having the property appraised or making a firm offer to the owner. Exacples of the kinds of property and property interests for which such a finding may be appropriate are cemeteries, railroad operating properties, utility easements, limited interests and serdtudes in land, and special-purpose industrial plants and similar properties involving complicated or eon- troverslal determinations of what is a fixture, i realty, and what is personalty. Before the Department enters into a purchase agreement with the owner of any such property, it shall have the property appeased, estrblish just compensation, and make a firm offer to purchase the property for the amount 30 established. 10. Review Appraisals. All appraisals shall be reviewed by either the Department and its staff or by private prefessional review appraiser under contract to the City. The reviewer shall determine the acceptability and adequacy of the eppraisal reports* including the data and analyses furnished by the appraisers to support their opinions of value. In the case of xaviaw by a review appraiserr the revvew appraiser shell media as on-site inspection of theproperty and of comparable properties considered by the appraisers in deriving their valuations. If the reviewer finds the appraisal reports acceptable sad properly documented, he shall make a written report to the Director of Community Davelop- ment indicating his epirdoo of the fair market value of each parcalw identifying the appraisal reports raviewed, and explaining the basis for Us conclusion as to fair market vffiue. ll. Establishment of Just Compensation. The Finance Committee Of the City Cooncil shall review the opinion of fair market value of each parcel submitted by the reviewer, and shall make its determination of fair market value from the reviewer's report. The Finance Comdttee shall then adopt a resolution which among other things: (1) establishes ,just compensation (fair market value) for each property; (2) identifies each property by seems of own rq parcel or other identification: (3) delimits the property in the interest to be acquired therein( (4) certifies that the work of the appraisers ad the reviewer with respect to each property has been performed in a competent mamer in accordance with applicable State law and the Uniform Relocation Assistance and Real property Acquisition Policies Act of 1970. 12. Saman,,Statement of the Dasas for Just Componsation. The Deport- ment moat furnish to each owner of a separately held compensable interest in the real property to be acquired a written summary statement of the basis fpr the amount established as just compensation for such property. The statement shell be furbished, along with the written offer to purchase, to the onmer at the initiation of negotiations and shall include the fallowing: a. An accurate legal description and location identification of the real property and the interest therein to be acquired. b. An inventory identifying the buildings, structures, fixtures, and other improvemental including appurtenant removable building equipment, which are considered to be part of the real property for which the offer of just compensation is made. c. A recital of the amount of the offer and a statement that such amount is the fall amount believed by the City to be just compensation for the pxroperty. d. A statement that the Cityrs determination of just compensation is not less than its approved appraisal of the fair market value of the property. e. Statement that the City's deterndnatian of just cmpen- sation for the real property to be acquired is based on its inspection of the property ad its consideration of appraisals of the property made independently by competent professional appraisers. f. no definition of "fair market values used by the City appraisers in asking their deterntinations of value. g. Statement that any decrease or increase in the fair market value of the real property to be acquired (or the entire property of the owner in the case of a partial taking) prior to the date of valuation caused by the public improvement or project for which the property is to be acquired, or by the likelihood that the property would be acquired for such improvement or project, other than that due to physical deterioration within the masonable control of the owner, has been disregarded by the Department and its appraisers in making their determinations of the fair market value of such property. h. Statement that the appraisals and determination of just compen- sation do not reflect any consideration of or allowance for aqv relocation assistance and payments which the owner is entitled to receive under Title If of the Unifonm balocatSm Assistance and Real Property Acquisition Policies Act of 1970 or for the Departments agreement to pay certain settlement costs. -10- If only a portion of a property is to be acquired, a separate statement, which shall be identified as being for intoxmetionel purposes only and as not constituting the basis for the City's determination of just ewryensation, allocating the total estimated just compensation for the partial taking, first to an amount representing estimated just compensation for the real property to be acquired, which compensation shall be the arrant considered to be the fair market value of the part or interest to be acquired as part of the whole property, and second, to an Meant representing any net damages or benefits to the remaining Property. J, If there are separately held interests in the real property to be acquired (such as easements, leaseholds, tenant-owned improvements, life estate's, and water, gas, oil, or mineral rights), the statement shall include an apportionment, based on the appraisals and the Department's appraisal review, of the total just compensation to each such separately held interest to be acquired. k. If anv buildiags, structures, fixtures, or other improvements comprising part of the real property have been identified as being the property of a tenant who hes the right or obligation to remove them at the expiration of his team, the total just compensation for the real property, including the property of such tenart., shall be apportioned to the land owner and to the tenant so that the amount apportioned to the tenant's improve- ments and interest in the real property will be the greater of (1) the fair market value of the tenant's leasehold estate in the property, (2) the avant which the tenant's improvements cont Abute to the fair market value of the real property to be acquired, or (3) the fair market value of the tenant's improve- ments for removal from the real property' The basis on which the City eatablished the value azd just compensation fee each tenant's interest shall be identified as to whether it represents the fair market value of the tenant's leasehold, the contributive value to the real property, or the value for removal from the real property. -11- 8. Acquisition Section 1. Actions Prior to negotiations 1. hotica of Intent to Acquire Real Property. The department shall vide the owner and each tenant to sccupanwy as of the date the notice is given, an official written notice of its ^intent to acquire" the real property. Such notice shall be given as soon ss feasible after the effective date of approval to acquire the real property. The Department shall proceed promptly with its land acquisition program sed initiate purchase negotiations within 90 days following service of such notice. Department relocation personnel shall be advised of the date of such service. 2. Agency Land Acquisition Statement. At the time the Department officially notifies the owner and tenants of its intention to acquire the real property or as soon thereafter as possible, the Department shall furnish to each owner of a separately hold compensable interest (including tenarta who so qualify) a written statement, which may be in the form of a brochure, letter, or other document, describing in nontechnical terms the City's acquisition process, including condemnation, The state- ment shall include all pertinent agquisition policies chi procedures and shall explain the principal rights aM options of the owner under those procedures. An chilies of required and suggested provisions for the land acquisition statement is set forth below. a. The statement shall describe the basic Objectives of the City's land acquisition program including those contained In this Plan. b. The statement shall explain that the owner or Us des- igated representative shall be given the opportunity to accaaymp each appraiser daring his inspection of the property. c. The statement shall indicate that the amount of just compensation will not be leas than the City's approved appraisal of the fair market value of the property and that promptly after the determination of just compensation, the Department will submit to the -12- oumer in writing an offer to acquire the property for the full amount so established together with a summary of the basis for such amount. d. The statement shall indicate that if the City purchases only a portion of the owners property and thereby decreases the value of the remaining property, the owner will be paid for the loss in value to the remaining property; that such damages or loss Ali be evaluated by the appraisers and explained to him by the negotiator; and that if the acquisition of say part of his real property would leave him with an un- economic remnant, the City will offer to acgUme the entire property. e. The statement shall clearly indicate that if the owner feels that the City's offer of just compensation does not represent the true value of his property, he may refuse to accept it; that if he can provide evidence concerning value or damage that warrants a change in the City's determination of just compensation, the price will he adjusted accordingly; and that if a voluntary agreement cannot he reached, the City mill institute a formal condemnation proceeding against the property, depositing in the court bonds in such amounts as the court shall determine to be ample and sufficient to satisfy the claims of all persons interested in such property estimate of just compensation. (Vaere applicable, the statement may also indicate that the coat of appraisal services, attorney fees and other costs that the owner may incur in presenting his case to the court will be his obligation.) -13- The statement should indicate that if the owner desires to retain any fi:turess shrubbe ✓ or other improvements scheduled for acquisition by the City he ;should contact the Department as soon as possible in order that all feasible methods of handling the transaction can be considered by the City's appraisers and relocation and acgvisit£on personnel. (The owner may also be advised of the Departmeot requirement that he provide assurance that he has the capacity to remove such improvements.) g. The statement shall identify settlement costa, including costs of search and evidence or assurance of title, to be paid by the City and ,shall indicate that the owner will net be required to Pay any sales comrdssion. The owner should be alvised that all Outstanding loans and liens on the property must be satisfied prior to or at the time of settlement and that the Department will discuss the details of such arrangements with him. h. The statement may indicate that if the owner has a 0. I. loan on the property, the Veterans Administration All generally recognize the dim mstences Of the sale and restore his loan privileges so that he may use them to purchase another property. The owner should be advised to cheek an such arrangements -with the nearest VA office. r. The statement may indicate that, £n most intones, the sale of privately owned property to the City for publiC purposes is considered "Smoluntary converaion" by the Internal Revenue Service, and the owner may not have to pay capital gains tax on any profit from the sale Of the property to the City if the money is reinvested in similar property within two years. j. Me statement shall include a reference to the Department's plans to pr aide the Owner with information covering relocation advisory assistance, services and p�nts for rddch an owner-occupant may be eligible. The statement shall also indicate that to the greatest extent practicable, no lawful occupant will be displaced without notification in writing at least 90 days in advance of the data by which the move is required. The owner should be requested to keep the Department informed .Mout Us relocation plans. k. The statement shall indicate that if arrangements are made to rent the property to an owner or his tenant after acquisition for a short term (defined as three years or less), or for a period subject to termination by the Departrent on short notice, the rental wall not exceed the least of, (1) the fair rental value of the property to a short—term occupier, (2) the pro rata portion of the fair rental value for a typical rental period, or (3) if the owner or his tenant is an occupant of the property as a dwelling, twenty—five (25) percent of his income. 3. Coordination With Relocation. Real property acquisition activities shall be coordinated with relocation activities to ensure the availability of suitable relocation housing for persons when displaced from their homes and to enable the Department to provide adequate relocation assistance for displaced businesses and farm operations. Section 2. Negotiations 1. Coercive Action. In no event shall the Department defer negotiations, advance or defer the time of condemnation, defer the deposit of bonds in court for the use of the owner, or take any other action which is coercive or misleading in nature in order to compel or induce an agreement on the price to be paid for a property. 2. Disclosure of Appraisals. The disclosure of appraisals to an owner is neither required nor precluded by Petleral law. 3. Ne site 'I, with owners Representatives. The owner may elect to be accompanied by an appraiser, attorney or other appropriate representative at any negotiation meeting. The negotiator shall ascertain whether the owner desires to be represented by legal counsel. If the negotiator is so informed by the owner, further negotiations shall be carried on through the attorney except in those cases where the attorney consents to the negotiator's making further contacts with the owner. y. Personal Contact with Omer. The Department's negotiator should personally meet with the property owner or his representative, at a mutually convenient place, to initiate the negotiations for the purchase of his property. A nonresident owner may be contacted by letter provided that the -15 - letter embodies substantially the same considerations that a personal meeting required, and an offer is made he the letter to meet the owner or his repre- sentative at the property or a mutually comecient location witbin a reasonable time to discuss the, pureness of the property. 5. Inspection Prior to Offer to Purchase, Immediately before the delivery to the owner of the offer to purchase his property. the Departments negotiator shall inspect the property to ascertain whether it conforms to the property as appraised. If it does not, the initiation of negotiations shall be deferred for a reasonable period of time until a revised determination of just compensation is made based on the then existing Condition and charaetei- istics of the property. 6. Basic Negotiation Procedures. a. Offer to Purchase. Promptly after the amount of just compen- sation for the property has been established, the City shall deliver a written offer to the owner to acquire his property for the real amount so established. The offer shall be dated and signed by the Director of Community Development and shall contain all applicable terms and conditions. (To facilitate negotiations, the detailed terms and conditions of the offer may be included by reference to anenclosed form of option agreement (offer to sell) for execution by the owner prior to final acceptance by the City. The use of such option agreements does not remove the obligation oP the City to provide a written offer in the form of a letter or other instrument, at the initiation of negotiations.) To expedite acquisition, purchase options shall be limited to a reasonable length of time which shall not exceed 60 days from the date of execution by the owner. b. Summary St.stement of the Basis for Just Compensation. The City's purchase offer most include or be accompanied by a written summary statement of the basis for the amount estimated to be just compensation for the property. Such summary state- ment shall contain the information specified in the summary statement of the Basis for Just Compensation. -16 - Explanation of Land Acquisition Policies. The negotiator shall explain the lend acquisition policies of the City as described in the City's iavi Acquisition Statement* particularly the policy of offering initially, and without bargaining, the full amount estimated to be just compensation. Discussion of Offer. Every reasonable effort must he made to discuss the offer to purchase, including all relevant terns and conditions, and the summary statement outlining the basis for the amount established as just compensation. The full -fair offer policy must not be regarded or explained as an inflexible one -price system. Because the Objective is the payment of fair and property compensation, price adjustments see to be made when justified. Accordingly, the discussions are to be conducted frau the viewpoint of two parties seeking agreement as to fair compensation and act on a "take it or leave it" basis. The owner must be given reasonable opportunity to present material which he believes to be relevant as to the question of value and to suggest modification in the proposed terns ani conditions of the purchase, and the Department shall carefully consider the owner's presentation and suggestions. On the other had, the Department's negotiator should make it Clear to the Owner that the offer is the full amount determined to be just com- pensation for the property and that it will not be changed unless evidence that the price is not round is furnished by the owner or otherwise found by the Department. Reservation of Riehts in Owner. The Department may permit an owner to reserve the right to remove fixtures, buildings or other improvements, provided the acquisition price is adjusted accordingly and such action is coordinated with relocation , provisions to insure that the owner dean not receive duplicate compensation. -17— f. 1pdating or Obtaining, additional A a&5315 If the evidence presented by the owner or a material change in the character or condition of the property (e.g., fire damage or other cause not solely attributable to the project or the likeli— head that the property would be acquired for the project) indicates the need for new appraisal evidence, or if a significant delay has occurred since the time of an appraisal, the Department shall have the appraisal updated or obtain a new appraisal. (A revision in acquisition price may be based on the original appraisals if a snmd determination can be made that way.) g. Modification of Just Compensation. If available evidence warrants a modification of the City's determination of just compensation, an appropriate price adjustment shall be made in accordance with the procedures contained in Part R of this Plan and the new amount promptly offered in writing to the owner. h. Off—Record Interests. The nepartment's negotiator shall investigate all off—record, interests, including the rights of parties in possession and shall negotiate for the disposition of all outstanding interests in the purchase contract. Acquisition 0£ Tenant-0wned Improvements. a. Negotiations with Tenants. If the Department negotiates with s tenant to acquire any building, structures, fixtures or other improvement, comprising part of the real property, which has been identified as being the property of a tenant who hag the right or obligation to remove it at the expiration of his term, the negotiator should obtain the written agreement of both the owner and the tenant as to the property interests to be acquired Pram each. No payment for any such improvement shall be made andese the comer disclaims all right, title, and interest in the improvements designated as owned by the tenant and the tenant assigns, transfere, and releases to the City all his right, title and interest in and to such improvements 18 - in consideration of the payment to he made to him. If the sense will not disclaim all inLerest in the improvements of a tenant, the City m,7 loo.tit;Le .; con emnation pro- ceeding against the real property. by. Alternative Methods of Compensation. The tenmot may reject payment es provided by Part B, paragraph 71) and Part By paragraph 6a and obtain payment for sash property interests as Otherwise provided for by applicable law. P:peants adder these provisions shall be coordinated with relocation benefits and other payments authorized by law to prevent duplicate compensation. 8. Notification To Occupants. A11 occupants of the property and all persona known to pain personal property situated on the premises shall be notified in writing of the date on Much negotiations for the acquisition of the property were initiated and the significance of such date to such persona. Such notices shall be delivered or sent by registered mail within one week after the initiation of negotiations. 9. Record of Negotiations. The Department shall maintain a log of negotiations on each parcel, or group of parcels in the same oeaership, s that it will have evidence, before instituting an eminent domain proceeding, that it has compiled with the policies and requirements of the Act as supple- mented by the Plan. Section 3. Condemnation 1. Negotiations Resuired Before Condemnation. Before instituting a condensation proceeding, the Department must make a diligent, conscientious effort to induce the owner to accept a fair and proper price for his property. If that effort is unsuccessful, the Department shall make a final offer to the owner in writing, which includes an invitation to discuss the acquisition of his property with the Departments affords a reasonable period of time for the owner to accept or reject the invitation, and includes a notification of the date on which the City intends to institute eminent domain pro - earnings if agreement cannot be reached on the purchase of the property within the time specified. -19- 2. Inverse Condemnation. Lf any interest in real property is to be acquired by exercise of the power of eminent domain, the City shall institute formal condemnation proceedings. The City shall not inten- tional� make it necessary for anse to institute legal proceedings to prove the fact of the taking of 6isweal property (inverse condemnation). 9. Blanket Condemnation proceedings. The City shall not file e blanket eondemoatihn proceeding against a group of parcels until every reasonable effort has been made to acquire by negotiated purchase, all known interests designated for acquisition in each parcels. After such effort has been made, the City may file a blanket condemnation proceeding against each parcels to acquire any interests not yet acquired and to perfect the City's title. r. Condemnation To Clear Title. After reaching a negotiated agree- ment with the ostensible owner of a property as to the compensation to be paid far the property, the City may initiate condemnation proceedings if such action is necessary to clear defects in the title. Condemnation shall not be used, however, for such purposes as obtaining the full or - partial release of a mortgage or other outstanding interest until a reason- able effort has been made by the Department to obtain the release or quitclaim of the outstanding encumbrances or interest by negotiation. S. Instructions To Counsel In Condemnation ProceediM. When the determination of just compensation is to be made in a condemnation proceeding, the City's counsel should be requested to take all reasonable actions to prevent inclusion in the verdict or award of any amounts for any losses or expenses reimbursed or reimbursable under HUD's relocation payments regulations. A. Settlement sell Surrender of Possession 1. Timiw,,. To the extent feasible within the limits imposed by schedules for clearances and redevelopment, the Department will permit the owner in the agreement of sale to choose the dates for closing And delivery of possession. _ -20- nInspection Report. Immediately before the closing, the property shall be inspected and a report prepared to establish: a. That the property conforms substantially to the property as appraised. b. That there is no evidence of work or labor having been per- formed, or materials furnished, in connection with the impreve- ent of the property that might entitle ethane to a lien on the premises. C. That, after taking title, there will be no outstanding rights of possession or interests adverse to the rights of the City, except easements or other interests that are not to be acquired. The report shall state who is in possession of the property, the date of initial occupancy (if available), whether unier month-to-month tenancy or lease, and if a lease, whether or not a quitclaim deed has been obtained from the lessee. d. That, to the extent necessary to avoid misunderstandings, there exists an inventory of real and personal property, designated as to whether to be acquired by the City or retained or repurchased by the owner (or tenants) and whether moving expenses or compeasation for direct loss may be payable. 3. Pavment Of dust Compensation Prior To Surrender of Possession. No owner shall be required to surrender possession of his reel property until the City: a. Pays or tenders to him bonds, the agreed purchase price, or b. Deposits bonds with the court in which the condemnation pro- ceeding has been instituted, in such amounts as the court shall determine to be :apple and sufficient . 4• Proration tf Rents and Deposits. The Department shall utilize a uniform practice with respect to the proration of rants and deposits collected by the owner from tenants. proration may be accomplished as of the date of closing or the owner may be permitted to retain such amounts for the rental. period during which title is acquired by the Department. Any deposits or rents prepaid by a tenant to the owner for a period beyond the end of the current rental period or beyond One month after closing, whichever occurs first, shall be paid by the owner to the City at closing. Settlement Costs. a. Applicability. As soon as possible after payment of the pur- chase price or deposit in court of bonds in a condemnation proceeding, whichever is earlier, the City shell re- imburse them r, for all reasonable expenses which the owner necessarily incurred for the following: (1)Recording fees, transfer taxes aM other expenses inci- dental to conveying the real property to the City. The City shall pny for all costs which the owner would not have to pay if the property were to be acquired through a condemnation proceeding. This policy shall be applied uniformly to all acquisitions. (2) Penalty costs and other additional charges for the pra- payment of any preexisting recorded mortgage entered into in good faith encumbering the real property. The Department shall examine all related aspects of the mortgage and State law to determine whether the mortgage is actually entitled to such a charge. (3) The pro rata portion of real property taxes or other charges for public services such as water, sewerage and trash collection, which are allocable to the period sub- sequent to the date of vesting of title in the aty the effective date of possession of such real property by the City, whichever occurs first. b. Limitations. Payments under subparagraph a. above will gen- erally ba b.aaad upon actual raluired cbnrCns• Ilowever, where such charges vary, reimburocvnent; uhall not exceed amounts in accordance with prevailing rates in the Bangor area for the performance of services which are directly and necessarily related to the acquisition of the property. The City shall not pay for State or local transfer taxes from which it is exempt by law, except as may be paid in accordance with subparagraph a, above, the City shall not pay any costs of clearing title. -22- C Proccaoing Of Claim The Depnrtmcn'. Ann take ouch steps m are necc..sary to minimize the need for an owner to make actual diaburaerante of hin mm funds for costs eligible for eventual reimbursement by the Department. If the real property in acquired by direct purchaser the Department .shall pay eligible settlement costa at the time of settlement of the acquisition. A claim for reimbursement under subpara- graph a. above shall be supported by such documentation as may be required by the Department and shall be submitted to the Department within six (6) months after the acquisition of the property. 6. Settlement cost ReporLine Statement. R detailed settlement cost reporting statement shall be prepared at each closing or acquisition of property by condemnation, itemizing all charges incurred for settlement services regardless of whether they are actually paid at, before, or after the closing. Such statement shall clearly separate charges paid by the Department from those paid by the seller or condemnee. The statement shall be dated and certified as true and correct by the closing attorney or other peraan handling the closing and a copy shall be furnished to the seller or condemnee when completed. 9. Lease Of Real Property To Former Occupant. a. Occupu¢y without Rentvl Obligation, The Department may permit any owner in occupancy of the property at the time of acquisition to continue such occupancy, without the obligation to pay rent, for a period up to, bot not exceediegg„ two (2) months. This practice shall be uniformly applied to all those eligible. Tenants may occupy their property without rent obligation for a period up to, but not exceeding, one (1) month. b. Occupancy witb Rental Obligation. If the Department permits a former owner or tenant to occupy the property on a rental basis for a short term or for n period subject to termination by the Department on short notice, the rental required shall not exceed the lesser of (a) the fair rental value of the property to a short-tem occupier or (b) the appropriate pro rate -23 - portion of the fair rental value for a typical -rental period. Short-term", as used herein, is defined as not exceeding two years from the date of exception of the rental agreement. If the former owner Or his tenant occupies the property as a dwelling, he shall not be required to pay a rental exceeding 25 percent of his insane. S. Ninety Days Advance Notice To Savrander Possession. No owner - occupant or tenant lawfully Occupying real property shall be required to move from a duelling or to move his business or farm operation, without notification in writing from the Department at lease 90 days in advance of the date by which such move is required, unless the Nepartment finals that such 90 -day notice is impracticable. (If the enrrendar of possession does not involve any displacement, the mandatory 90day period does not Tply.) Where applicable, Lot 90dgy notice shell be given as follows: a. If the City has entered into an agreement with the owner t0 parchase the property, the date set in the notices to tenants for surrendering possession shall be not earlier than 90 days after the department gives the notice and not earlier than the date on which the owner is obligated under the agreement to deliver title or the right of possession to the City. An agreement on the time for delivering possession in a con- tract with an owner for the purchase of his property fulfills the requirement for notice to him as an occupant. _ b. If the property is acquired through emnent domain proceedings, the 9o- by notice shall not be given prior to the date on which the City acquiree title to, or the right of possession of, the property. Payment Of Litigation Expenses Of Certain Condeamees. a. Applicability. The City shall reimburse the owner or the real property for the owner's reasonable costs, disburse- ments, and expenses of litigation, including attorney, appraisal, and engineering fees, actually incurred because of condemnation proceedings, if: -24— (1) In a consternation proceeding instituted by the City to acquire such real property for a project, the final judgment of thrr court havi.ry; jeriadic Llon over :uch proceeding i:; Lhrd. tha City cannot inquire the real property by condemnation, or (n.) Such proceeding ir, abandoned by the City other than pursuant to an agreed-upon settlement of the proposed acquisition of the property by direct purchase; r (3) Acourt of competent jurisdiction renders a judgment to favor of the mroer as plaintiff in an inverse car damnation proceeding or the City effects a settlement of such proceeding. b. limitations. Payments under subparagraph a. above shAl not exceed .'mounts representing fair and equitable reimbursement, based upon prevailing rates in the Bangor area for the performance of services which are directly and necesnrily related to such condemnation proceedings. C. FilinS of Claim. A claire for a payment under subparagraph a. above shall be supported by such documentation as may be required by the Deparkcent and shall be submitted to the department within a period of b months after: final judgment in accordano. with subpiregrsphs a(3) or (3) above, or the abandonment of a condemnation proceeding by the City, whichever is applicable. G. Maintenance of Records The Department shall maintain all records, reports, and resolutions concerning its land acquisition activities in a project until at least three years after the project is completed. A runrdng record in coma ary form shall be kept showing major actions and items of information on each parcel is follows: a. Data of notice of intent to acquire. b. Appraisal report values ad applicable dates. c. Amount approved as just compensation and date of approval. ,"5- d. Date of initiation of negotiations. e. Date of final acceptance of offer. f. Date that condemnation proceeding was athorized by the City council. g. Date that condemnation proceeding was instituted. h. Date that title was vested in the City. i. Acquisition Prices if by pnrehane or atipulntion. J. Acquisition prices if by court awed after trial of the issue of value.