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| Relocation Assistance Program for Business Owners and Tenants |
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Prepared by the
Brentwood Redevelopment Agency
January 2003
This Guide is intended to provide general information with some specifics on the Relocation Assistance Program. Further details regarding relocation assistance and benefits are set forth in the California Relocation Assistance and Real Property Acquisition Guidelines, California Code of Regulations, Title 25, Chapter 6, prepared by the Department of Housing and Community Development. In the event of any conflict, the State Guidelines shall be controlling. |
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| I. Introduction |
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On April 23, 1991, the Brentwood Redevelopment Agency adopted Resolution Number 91-7 covering the guidelines to be followed in carrying out the relocation of businesses which move as a result of Agency acquisition of real property within the Redevelopment Project Areas. The guidelines in this brochure will be updated periodically to correspond with adoption of new regulations by the California Relocation Assistance and Real Property Acquisition Guidelines.
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| II. Policy of the Agency |
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The policy of the Agency shall be to assure that all displaced businesses within the Project Areas will be treated in a fair and equitable manner and in accordance with the requirements of the law.
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| III. Relocation Program |
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When displacement of businesses becomes necessary, all affected owners and tenants will be contacted and interviewed by a representative of the Agency within 60 days after the Agency makes a written offer to acquire the property to determine relocation needs for a replacement location and for other services. Any information given by owners and tenants will be kept confidential. No one who lawfully occupies a property in a Project Area will be required to move without at least 90 days’ written notice, and after detailed information on the relocation program, services and payments has been given. No move should be made until notifying the Agency, as a premature move could result in a loss of eligibility for a payment.
Displacees are encouraged to contact the Agency’s office and to cooperate with the staff and Relocation Advisors. The Agency’s address, telephone number and office hours are listed below.
Brentwood Redevelopment Agency
150 City Park Way
Brentwood, CA 94513
(925) 516-5187
Monday – Friday 8:30 am – 5:00 pm
The Relocation Assistance Program provides the policies for orderly, timely and efficient relocation of business occupants displaced by Agency activities. The relocation program is administered by offering advisory assistance and making relocation payments as follows: |
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A. Relocation Advisory Assistance |
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Maximum assistance to re-establish with a minimum of delay and loss of earnings will be provided to displaced businesses. A Relocation Advisor will be assigned to each displaced business throughout the relocation process and will be the principal contact in all relocation matters. A referral list of local business opportunity brokers and real estate brokers, who can provide information on the availability, prices and rentals of comparable commercial properties in the area will be made available to assist in obtaining a suitable replacement location. Information will also be supplied regarding other governmental agencies’ programs which may offer assistance to displacees, such as the Small Business Administration. The Relocation Advisor may provide information relative to zoning ordinances and other municipal codes, and will assist in completing and submitting claim forms for relocation payments. |
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B. Relocation Payments |
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Relocation payments are available to eligible businesses and non-profit organizations. To qualify for these payments, an owner or tenant must have legally occupied the property on which the displacee conducted a business at the time the Agency makes its first written offer to purchase the property. Relocation payments to businesses and non-profit organizations consist entirely of moving costs and related moving costs. Relocation moving payments do not cover such costs as down time, overtime, loss of business goodwill, loss of profits, loss of employees, or other similar items. Generally, claims are submitted and moving payments are made after the move is completed and the premises are left clean and orderly. Commercial displaces may elect one of the two types of relocation moving payments as outlined below: |
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1. Actual reasonable Moving and related Expenses |
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You may choose to be reimbursed for actual moving and related expenses which include:
- Moving Expenses. Each displacee will be provided a complete moving service to a new location and will have the option of having either a commercial move or conducting a self-move. The Agency must be supplied with a written inventory listing of the personal property items used in the business to be moved at least 30 days in advance of the move. Also, no later than 15 days prior to moving, written notice must be given to the Agency of the date of the move and the type of move requested (commercial move or self-move). Relocation Advisors must be allowed to make reasonable and timely inspections of the personal property at both the displacement and replacement sites, and to monitor the move.
The displacee will be required to obtain a minimum of two competitive bids from a list of qualified, approved professional moving carriers. The Agency makes direct payment to the professional moving carrier with the lowest bid, or if a self-move is elected payment can be made to the displacee in an amount equal to the lower of the two bids. To assist in filing a claim, the following is a list of expenses which are generally included.
- Transportation of personal property from the acquired site to a replacement site (limited to a distance of 50 miles)
- Packing, crating, unpacking and uncrating of personal property to be moved.
- Removal and reinstallation of appliances, machinery and equipment, including utility connection charges.
- Re-lettering of trucks, signs and similar items such as re-printing of business cards and stationery made obsolete by the move.
- Insurance of property in connection with the move, and reasonable replacement of property lost or damaged where insurance is unavailable.
- Storage of property for a period generally not to exceed 12 months, when the Agency determines it to be necessary.
- Any re-application fee for a professional license, permit or certification required by a displacee for the replacement location.
- Other moving and related expenditures that the Agency determines are reasonable by a displacee.
The following is a list of items which would not be eligible in a moving expense claim:
- Additional expenses incurred because of operating in a new location, except as permitted under the “re-establishment” payment described in Subparagraph d below.
- Interest on loans to cover moving expenses.
- Loss of business goodwill or loss of profits.
- Loss of trained employees
- Personal injury
- Preparation of claim for moving and related expenses.
- Other items the Agency determines are not reasonable and necessary
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2. Payments Related to Personal property Not Moved |
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A displacee may receive a payment for actual direct loss of tangible personal property which is not relocated. Payment is determined on the basis of the value of the property minus any proceeds from the sale of the item, or the cost to move the item, whichever is less. Appropriate documentation to support a claim, such as reasonable advertising costs, auction records, or other supporting evidence, will be required.
A displacee may receive a payment for personal property which is not relocated, but rather is replaced with substitute equipment at the replacement site. Payment is determined on the basis of the cost of the substitute item minus any proceeds from the sale of the replaced item, or the cost to move the replaced item, whichever is less. Appropriate documentation to support a claim, such as proof of cost of substitute item installed, reasonable advertising costs, auction records, receipts from sale proceeds, or other supporting evidence will be required.
When personal property is abandoned with no effort made by displacee to dispose of such property, the displacee is not entitled to claim moving expenses or losses from the abandoned item. |
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3. Searching Costs for a Replacement Location |
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A displacee may file for reimbursement of costs to search for a replacement location, not to exceed $1,000. Such a claim must be supported by accurate records of dates, times, locations, expenses, receipts, diaries, and similar evidence, and may include the following expenses:
- Transportation within a radius of 50 miles from the city limit boundaries.
- Meals and lodging while away from home, when receipts are presented as documentation.
- Reasonable time spent in searching, based on the individual’s average hourly wage rate.
- Reasonable fees paid to real estate agents or brokers to locate the replacement site, excluding any fees or commissions related to the purchase of replacement site.
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4. Re-establishment Costs for a Business |
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A displacee may file for reimbursement of actual and reasonable costs necessary to relocate and re-establish a business at its new site, not to exceed $10,000. Such a claim must be supported by accurate records of dates, times, expenses, fees, receipts, and similar evidence, and may include the following expenses:
- Repairs, improvements or modifications to the replacement site as required by law, code or ordinance.
- Construction and installation costs for exterior signing to advertise the business.
- Provision of utilities from right-of-way to improvements at replacement site.
- Advertisement of replacement location.
- Licenses, fees and permits when not paid as part of moving expenses.
- Estimated increased costs of operation during the first two years at the replacement site.
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OR INSTEAD OF RECEIVING PAYMENTS AS OUTLINED IN “ACTUAL REASONABLE MOVING AND RELATED EXPENSES” ABOVE, A DISPLACEE MAY ELECT TO RECEIVE: |
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5. A Fixed Payment In-Lieu of Actual Moving and related Expenses |
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A fixed payment (in-lieu of actual moving and related expenses) may be made and is computed on the basis of the average annual net earnings of the displacee for the two years immediately preceding displacement, and shall be in an amount of not less than $1,000 or more than $20,000. To be eligible to receive an in-lieu payment, the Agency must determine the following:
- That the business cannot be relocated without a substantial loss of existing patronage. The term “existing patronage” includes membership, persons, community and/or clientele served or affected by the activities of the business.
- That the business is not part of a commercial enterprise having no more than three other establishments, which are not being acquired for the project, and which are engaged in the same or similar activity.
- The business is not operated solely for the purpose of renting the site to others.
- That during the two taxable years prior to displacement, the displacee’s business must have:
- Had an average annual gross receipts of at least $5,000 or
- Had an average annual net earnings of at least $1,000, or
- Contributed to at least one-third of the average gross income of the displacee.
To establish average annual net earnings, displacee must submit certified copies of income tax returns for two years immediately preceding the taxable year in which the business is displaced.
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| IV. Grievance Procedure |
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If a displacee believes that a claim has been unfairly administered, the claimant may request review by the Executive Director of the Agency, or his designee. Review may also be brought before the Relocation Appeals Board if the claimant wishes to forego review by the Executive Director or is unsatisfied with the Executive Director’s determination. The Relocation Appeals Board, after holding a hearing, will make a final determination. If still unsatisfied, the claimant may then seek judicial review. Any appeal must be filed within 18 months: For tenants, 18 months following the date of displacement; for owners, 18 months following the date final compensation is received or the date of displacement, whichever is later. |
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| V. Eviction Policy |
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In certain circumstances, the Agency may rent an acquired property to an owner or tenant who occupied the property at the time of the Agency acquisition until the property is required for redevelopment. If eviction of an owner or tenant should become necessary for any legal circumstance, it will in no way affect a relocation entitlement, except that any rental agreement between such occupant and the Agency will provide that failure to pay necessary rental payments may reduce the relocation payment. |
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