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ROW has unique issues when constructing projects in urban corridors. Urban projects where ROW acquisition is not required are rare. Even the simplest projects require purchasing properties for newly aligned ramps, geometric changes at intersections or interchanges, or widening pavement sections. ROW impacts vary: this study first sought to understand how urban projects were influenced. Figure 10 shows how the agencies responded to the question exploring this topic. The agencies were asked to identify which aspects of ROW acquisition were most challenging. The responses identified three particular areas: 1. Property owner expectations for compensation (56%). 2. Relocation of commercial property owners (50%). 3. Too little time to complete acquisitions (40%). In completing projects such as this it is often informative to see what elements of a particular process or activity are not as significant as the others (see Figure 11). In this case, the following were least likely to be identified as problematic in the overall acquisition process: ⢠Inability to hire outside staff to augment agency resources (0%). ⢠Inadequate funding (17%). ⢠Real estate market conditions (17%). This query attempted to assess how the ROW acquisition process might impact the project schedule. Although some states have difficulty completing the design in time to achieve the desired bid dates, in others, such as Indiana, property acquisition is the critical path and determines when a project is bid and constructed. Participants answered questions regarding both residential and commercial properties. Three issues were explored for each type. The first two were: 1. How long did the acquisition process take if condem- nation was not involved? 2. How long did the acquisition take if condemnation was involved? Tables 12 and 13 contain this information for residential and commercial properties, respectively. 18 The responses are enlightening in how significant a time issue ROW acquisition is for urban projects. In both residential and commercial cases, when an agency exercises its rights to condemn a property, resolution requires from 6 months to more than a year. Given that condemnation proceedings cannot begin until an agency has completed the Record of Decision for a project, this means that a project is well advanced before the purchase process can begin. If condem- nation is not required, then 57% of residential and 38% of commercial properties are acquired in 6 months or less. The key to this process appears to be avoiding condemnation if schedule considerations are an issue. Combining the information found in Figures 12 and 13 with that in Tables 12 and 13, the relationship between the impacts of condemnation and its frequency become evident. This shows that one-half of the commercial properties require condemnation, and the time frame for that process could exceed a year. In residential condemnations, this situation does not occur as frequently and has less time impact. This trend must be recognized as a critical factor in scheduling activities. This study sought to identify strategies used by agencies to address the previously mentioned dynamic. Table 14 shows the strategies employed and how respondents rated the effectiveness. The top three strategies employed were: 1. Use private sector resources to fill critical roles and augment agency staff (75%). 2. Add staff to accelerate the acquisition process (55%). 3. Advertise projects before all parcels have been acquired or right of entry secured (50%). The four least commonly used strategies were: 1. Pay incentives to private sector companies performing acquisition services for your agency (0%). 2. Pay incentives to property owners that agree to sell early in the process (10%). 3. Use of the construction contractor to acquire property after awarding the construction contract (10%). 4. Use of the construction contractor to acquire rights of entry after awarding the construction contract (15%). Questions 37 and 38 asked agencies to rate the effectiveness of their strategies; a strong correlation exists between what they do and the effortâs effectiveness. Clearly, the agencies are doing what they believe is most effective. CHAPTER FIVE RIGHT-OF-WAY
19 0 10 20 30 40 50 60 70 80 90 FIGURE 10 How ROW acquisition and activities impact projects (see Question 28). (Owing to multiple choices percentages do not equal 100%.) FIGURE 11 Most difficult elements of the acquisition process (see Question 29). (Owing to multiple choices percentages do not equal 100%.) Average Time What is the average time to acquire a residential property that does not require condemnation? (% of state response) What is the average time to acquire a residential property when condemnation is required? (% of state response) Less than one month 0 0 Two to three months 14 5 Four to six months 43 0 Six months to a year 29 55 More than a year 14 40 TABLE 12 AVERAGE TIME REQUIRED WHEN CONDEMNATION IS REQUIRED ON RESIDENTIAL PROPERTY A final trend noted from the results is that 50% of agencies advertise projects before all the parcels are cleared. Although used frequently, this approach adds risk to the overall delivery of the project and could result in financial and schedule impacts. The narrative comments in Appendix B offer further insight into how states are dealing with ROW acquisition. From these responses certain themes emerge including: ⢠Utilization of alternative dispute resolution processes can help move decisions and agreements forward more quickly. ⢠Seeking early right of entry can help reduce impacts. ⢠Early involvement of ROW staff is important during design. ⢠Utilization of outside resources can help to augment in-house staffing.
20 Average Time What is the average time to acquire a commercial property that does not require condemnation? (% of state response) What is the average time to acquire a commercial property where condemnation is required? (% of state response) Less than one month 0 0 Two to three months 5 5 Four to six months 33 0 Six months to a year 43 35 More than a year 19 60 TABLE 13 AVERAGE TIME REQUIRED WHEN CONDEMNATION IS REQUIRED ON COMMERCIAL PROPERTY FIGURE 12 Percentage of residential properties requiring condemnation on urban corridor projects (see Question 32). FIGURE 13 Percentage of commercial properties requiring condemnation on urban projects (see Question 35). Some states are trending toward streamlining the acquisition process in the form of administrative settlements and payment of incentives. Urban projects are definitely affected by the acquisition of ROWs. Most common among the impacts are cost over- runs and schedule implications. Owner expectations and the relocation of commercial owners were noted by the agencies as being particularly questionable. In looking at a project schedule and what could delay construction it is clear that once a Record of Decision is in hand that ROW acquisition can become the critical path. Condemnation is the discriminator. If a residential property goes to condemnation, 95% of these parcels take at least 6 months to acquire and 40% more than year. In the case of commercial property, 60% take more than a year to clear. Adding staff, either in-house or from the private sector, are the two most common strategies to combat the schedule impacts of the acquisition process. Although a great deal of effort is made to secure all of the ROWs for a project before advertisement, 50% of the agencies noted that they do move ahead to construction without 100% of the parcels cleared.
21 ROW Action by State Which of the following strategies does your agency employ to deal with right of way issues relating to construction projects in urban corridors? (% of state response) Of the options listed in Question 36, which do you find to be the most effective in dealing with the impacts of right of way acquisition on the urban corridor projects constructed by your agency? (% of state response) Of the options listed in Question 37, which do you find to be the least effective in dealing with the impacts of right of way acquisition on the urban corridor projects constructed by your agency? (% of state response) Use private sector resources to fill critical roles and augment agency staff 75 61 8 Add additional staff to accelerate the acquisition process 55 55 0 Advertise projects before all parcels have been acquired or right of entry secured 50 44 15 Award projects before all parcels have been acquired or rights of entry secured 35 6 54 Other 30 56 0 Use of the construction contractor to acquire rights of entry after awarding the construction contract 15 0 38 Pay incentives to property owners that agree to sell early in the process 10 6 0 Use of the construction contractor to acquire property after awarding the construction contract 10 6 38 Pay incentives to private sector companies performing acquisition services for your agency 0 0 15 Owing to multiple choices percentages do not equal 100%. TABLE 14 RIGHT-OF-WAY ACTIONS BY STATES
