PURPOSE
This procedure outlines the steps required during the Design Phase for the timely acquisition of property rights for both public works and public building projects. It also specifies the information and materials to be submitted to the Real Estate Group in order to ensure both accurate and timely completion of the project.
REFERENCE
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RESPONSIBILITIES
Project Manager (PM): The PM is responsible for requesting the required right-of-way maps, legal descriptions, and property appraisal(s) through the Real Estate Group. The PM is also responsible to encumber the required funds for all identified acquisition costs based on a Class C Estimate prepared by the Real Estate Group. Valid Class C Estimates should be no more than 6 months old. Class C estimates will include all costs necessary to complete the acquisition process including projected acquisition and relocation costs (see Related Procedure 7.2).
Survey Division: The Survey Division is responsible to determine the exact right-of-way and prepare final right-of-way maps and legal descriptions, as required.
Real Estate Group: The Real Estate Group is responsible for requesting the right-of-way map from the Survey Division, preparing the title report, conducting the property appraisal, and negotiating property owner compensation for right-of-way.
General Services Department (GSD), Asset Management Group: The GSD Asset Management Group is responsible for conducting the property appraisal and negotiating property owner compensation for right-of-way for public building projects.
City Attorney: If negotiations with the property owner fail, the City Attorney is responsible to initiate eminent domain proceedings and obtain all necessary rights-of-way.
PROCEDURE
Real estate acquisition is required any time a project includes obtaining the right-of-way on property not currently owned by the City of Los Angeles. This process is implemented to acquire both permanent property rights, such as easements and fee purchases, and temporary property rights (no matter how minor or brief), such as rights of entry, permits to enter to construct, and temporary construction easements.
For projects where any suspected real estate issues exist, the Project Engineer (PE) and PM should meet with the Real Estate Group at the start of the design phase.
Infrastructure Projects
At the earliest point in the design phase, where final project alignments have been established, the PM will submit preliminary plans of sufficient detail to document required easements (temporary and/or permanent) and rights of entry to the Real Estate Group which will forward said plans to the Survey Division with a request to prepare a right-of-way map (see Related Procedure 7.2 - Identifying Property Needs). In order to begin the right of way acquisition process, the PM’s request to the Real Estate Group should include the project’s funding source, environmental document(s), and preliminary plans. Omission of any of the aforementioned items from the initial request may delay the acquisition process. The following is a brief summary of the resulting right-of-way acquisition process.
The Survey Division overlays the submitted plan on legal maps to determine the exact right-of-way required to accomplish the project, as it is currently proposed.
The Real Estate Group prepares the Title Report(s) and submits it (them) to the Survey Division.
The Survey Division uses the Title Report to prepare right-of-way maps and legal descriptions for the necessary property rights required.
The Survey Division submits the Final Right-of-Way Maps to the Real Estate Group for its property appraisal.
The PM submits the plans and profiles to the Real Estate Group for its property appraisal.
The PM submits written authorization to the Real Estate Group to proceed with its property appraisal.
The PM submits the required funding information to the Real Estate Group for its property appraisal.
The Real Estate Group performs the property appraisal in order to determine the amount of just compensation due the property owners for the rights to be acquired.
If required, the Real Estate Group Relocation Staff prepares an estimate for its relocation assistance.
The PM prepares and issues a memo to the Bureau of Accounting to encumber the full amount of all identified acquisition costs.
The Real Estate Group negotiates compensation for the following rights with the property owner(s):
Fee Purchases – used to create permanent facilities
Permanent Easements – used to create space for infrastructure such as streets, sewers, and storm drains
Temporary Construction Easements – used when the project construction necessitates a temporary use of private property
Permits to Enter to Construct – used to enter on private property to do work solely for the benefit of the property owner
If negotiations fail, the Real Estate Group submits a written request to the Survey Division to refer acquisition of the unacquired parcels to the City Attorney.
In response, the Survey Division drafts a Condemnation Ordinance and forwards to the Planning Department for their report and recommendations. Once the Planning Department completes their review and sends Survey Division their report and recommendations, the Survey Division will send the draft ordinance, environmental reports and Planning Department Findings to the City Attorney.
The City Attorney then initiates Eminent Domain Proceedings.
Upon successful conclusion of the Eminent Domain Proceedings, the City Attorney deposits the full purchase offer amount(s) with the Court. The City Attorney obtains the Court Order for Possession and notifies the Real Estate Group.
Once all necessary property rights have been acquired, the Real Estate Group will prepare a Construction Clearance for non-federally funded projects or will assist the PM in preparing a Right-of-Way Certification for federally funded projects. At this point, all owner and tenant relocation, if required, must be completed. The Construction Clearance is signed by the Chief Real Estate Officer (REO) II. The Right-of-Way Certification is signed by both the Chief REO II and the City Engineer. (Please note that for federally funded projects the Certification process must be completed prior to commencing Advertising and Bid & Award of the project to avoid jeopardizing federal reimbursement.)
The property acquisition process is now complete.
Building Projects
Upon initiating the design phase of a public building project, the PM and Owner Department will have already worked with GSD Asset Management to identify the required right-of-way (see Related Procedure 7.2 - Identifying Property Needs). The PM now requests GSD Asset Management to conduct an appraisal of the property targeted for acquisition. Following is a brief summary of the resulting right-of-way acquisition process.
GSD Asset Management performs the property appraisal in order to determine the amount of just compensation due the owners for the property rights to be acquired. Should the services of a consultant be enlisted, GSD Asset Management forwards a copy of the contract to the PM, who encumbers funds for payment.
GSD Asset Management completes the appraisal and forwards it to the PM along with any consultant invoices.
The PM processes all consultant invoices for payment and submits written authority to Asset Management to proceed negotiating with the property owners for compensation of all required property rights. GSD Asset Management negotiates compensation for the following rights with the property owners:
Fee Purchases – used to create permanent facilities
Permanent Easements – used to create space for infrastructure such as streets, sewers, and storm drains
Temporary Construction Easements – used when the project construction necessitates a temporary use of private property
Permits to Enter to Construct – used to enter on private property to do work solely for the benefit of the property owner
If negotiations fail, GSD Asset Management prepares a draft Condemnation Ordinance and forwards it to the PM.
The PM then completes a Condemnation Package by obtaining the necessary planning findings and environmental documents (obtained from the Planning Commission) and forwards the complete Package to the City Attorney.
The City Attorney initiates Eminent Domain Proceedings.
Upon successful conclusion of the Eminent Domain Proceedings, the City Attorney deposits the agreed purchase offer amount(s) with the Court. The City Attorney obtains the Court Order for Possession and notifies GSD Asset Management and the PM.
When all necessary rights have been acquired, GSD Asset Management requests the PM to obtain the funds necessary to complete the transaction. The property acquisition process is now complete.
RELATED PROCEDURES
LINKS / ATTACHMENTS
Links
Department of Transportation, State of California (Caltrans), Right-of-Way Manual
Department of Transportation, State of California (Caltrans), Local Programs Procedures Manual
U.S Department of Transportation, Federal Highway Administration, Project Development Guide
Attachments
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Comments