An Assessment of the Effects of Public Project Acquisitions on Adjacent Business
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An Assessment of the Effects of Public Project Acquisitions on Adjacent Business

Filetype[PDF-4.76 MB]

  • English

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      Final Report
    • Abstract:
      Changing federal policy has caused a number of federal agencies to take a closer look at the impacts that are created by the implementation of their policy. The Federal Highway Administration, in particular, has been concerned about the impacts that are caused during the construction of highways, and, in some cases, impacts during the operations of the highways. This study has evaluated national experience with secondary impacts within the realm of ‘takings’, particularly as it applies to highway issues. Over the years, the legal definition and applications of takings have continually evolved, and in the current legislative environment, there is a greater emphasis in compensating for the negative impacts that are imposed on property owners. The focus of this study was on the secondary impacts where property acquisition was not an issue. The consultant team prepared a thorough review of the academic literature on this issue, and reviewed relevant legal decisions concerning compensable and non-compensable takings. Several case studies -- both detailed and in overview format -- were completed to further augment the research. This study focused on secondary impacts, generally considered to be those that are created by highway development on adjacent properties. The assessment defined the externalities that are created, specifically determining the negative impacts. Positive impacts were not considered; neither were the long-term net or aggregate impacts. Policy in the United States dictates that when a property is taken for a public purpose, the taking must be compensated. For secondary impacts, property is not used for development, and the impacts are largely temporary (although some are permanent) and are caused either by the construction activity or the results of operations.
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