Is Your Land Being Taken for I-66? EMP/ FAM Must Pay VDOT $50,000 for Eminent Domain Takings

If VDOT Contractors I-66 Express Mobility Partners LLC / FAM Construction LLC / Bowman Consulting Group, Ltd. is taking your land for the I-66 Transformation, you should be aware of a key clause in the Commonwealth of Virginia’s contract with their Contractors.

The Contractors will try to reach an agreement with land owners to purchase the lane outright for a suitable price.  But if this agreement is not reached, the Contractors will use the Commonwealth to legally “take” the land via eminent domain.  For this process to occur in any event, the Commonwealth must provide “just compensation” to the landowner.

But the I-66 “Comprehensive Agreement” contract has an interesting clause that may benefit you: If VDOT and the Commonwealth need to get involved with a formal land taking instead of a real estate purchase, then the Contractor I-66 Mobility Partners LLC must pay VDOT $50,000 for each taking.

This payment compensates VDOT for the administration costs of condemning land.

In addition, the Contractor must set aside 130% of the offer amount made for each land parcel, presumably to reduce the chance of a condemnation if more generous offers are available.

So when negotiating a land acquisition by FAM Construction LLC or Bowman Consulting Group, remember that they have 130% of their offer price already set aside for you, and if you don’t agree on a price they have to pay VDOT $50,000  if they need to take you court.

Here is what Section 8.05 (d) (ii) on page 42 of the Comprehensive Agreement says:

(ii) For parcels that go to condemnation, Developer [I-66 EMP LLC] will be required, prior to the start of condemnation proceedings, to place in the Project Enhancement Account an amount equal to 130% of the offer amount set forth in the Condemnation Certificate and to separately pay to the Department $50,000 to pay the Department’s administrative costs in pursuing condemnation. Following the conclusion of all condemnation proceedings related to the Project, the Developer will be entitled to any condemnation funds remaining in the Project Enhancement Account. If the aggregate amounts awarded by the court exceeds the amount deposited to the Project Enhancement Account for condemnation, the Department [VDOT] will pay to the Developer the amount necessary to fund such excess. The Department [VDOT] will not provide review or approval of appraisals or of offers to the property owners prior to the Developer filing a Condemnation Certificate.

You can find the relevant Comprehensive Agreement at:

http://www.p3virginia.org/wp-content/uploads/2016/12/Comprehensive-Agreement-and-Exhibit-A-c-2.pdf

 

This entry was posted in Government Policy, Legally Speaking. Bookmark the permalink.

1 Response to Is Your Land Being Taken for I-66? EMP/ FAM Must Pay VDOT $50,000 for Eminent Domain Takings

  1. Very important info. Thank you for sharing.

    Like

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