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Physical and Access/Locational Characteristics of Remainders of Partial Takings Significantly Affecting Right of Way Costs
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1994-10-01
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[PDF-2.59 MB]
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Edition:Interim: September 1993 - August 1994
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Abstract:Highway right-of-way costs have accelerated in recent years, especially in suburban and urban areas of Texas. Thus, further efforts are being made by Texas Department of Transportation (TxDOT) officials to find ways to reduce or hold down such costs. One of the efforts helped to enact a new law determining the compensation paid property owners for partial takings of right-of-way for highways. This law, subsequently declared unconstitutional by the Texas Supreme Court, allowed consideration of special or direct benefits arising from the highway improvement in awarding compensation for the taking or assessing damages to the remainder, and it did help to reduce right-of-way costs. The purchase of partial takings can cause some remainders to suffer considerable severance and/or proximity damages. The state only gains title to the partial taking, and the property owner keeps title to the remainder. Although enhancements can offset some of these damages, purchasing agencies are still paying many property owners more than the taking value. Often, small and irregularly shaped remainders are created and damaged to 100% of value (the whole property's value). This study seeks to determine which remainder characteristics significantly affect right-of-way costs. The more specific objectives of the study are to determine (l) the significant remainder property, access, and location characteristics that affect right-of-way costs and (2) the effects of the 1984-87 right-of-way evaluation law on right-of-way costs. A thorough study of the literature; a mail survey of selected right-of-way fee appraisers, TxDOT appraisers and attorneys on the state attorney general's staff; the preparation and analysis of a sample of old remainder case histories developed by the Texas Transportation Institute and TxDOT during the 1960s; and the collection and analysis of a new sample of remainders created before, during, and after the new law was in effect are all being accomplished under the research plan. The new sample data covers three time periods: 1) January 1, 197 4 to October I, 1984, 2) October I, 1984, to August 17, 1987, and 3) August 17, 1987, to December 31, 1991. All the work plan has been completed, except for the collection and analysis of the new data base of remainders.
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